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Watch the daily M/As on ICE and c/p support on NYMEX

Published Thursday, January 15th, 2015

The contracts closed above their respective 13-day M/A resistances. Whilst this, in itself, is bullish, it comes with strings attached and the technical picture is not as straightforward as it seems at first sight. Yesterday’s settlements provide us with a reason to be long but one should not be faint-hearted in cut back on these long positions if necessary.

 

February ICE: The 13-day M/A that was closed above yesterday is currently at 48.05. Last night’s settlement gave us a buy signal and validated the nearest upside target. It is the 38.2% correction point of the November-January downtrend at 51.62. Yesterday’s rally, however, has not been followed through this morning and the price of the contract is slipping. The question, therefore, is how to protect new long positions. The market is back below the 13-day M/A at the time of writing and has its 5 and 8-day M/As at 47.58 and 47.09 respectively. These are the supports that should be used to cut losses on long positions.

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Posted by Tamas Varga

Tamas Varga has been in the oil industry since 1992 and with PVM for 18 years. During his time in the industry he has gathered a range of experience in the oil markets. At PVM Tamas is in charge of data collection and analysis.