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Both contracts are bullish

Published Thursday, February 12th, 2015

March ICE: For the last three days the contract has always rallied but closed well below the days’ highs. Nevertheless it always gained on the day confirming that despite the volatile nature of trading it is in an uptrend. Yesterday was no different as it ran up to the 100-day contract M/A (52.99 today) before settling below the 100-day continuation M/A (52.19) and below the 50% correction point of the November-January downtrend at 51.89. Longs took profit during the day but they were not given the chance to go long on the close. This morning the 100-day contract M/A is under pressure again and on a close above the market is likely to run further higher, possibly as high as the 61.8% retracement level of the aforementioned downtrend at 53.91. The contract is bullish as all the daily short-term M/As are below the price action and the daily slow stochastics is firmly positive. This trend will be confirmed by not closing below 52.19 (100-day) and 51.89 (correction point) and bulls will firmly remain behind the steering wheel if 52.99 is below tonight’s settlement. Expect further upside pressure today.

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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.