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Change of mood on ICE – Patience on NYMEX

Published Wednesday, February 25th, 2015

April ICE: The contract rallied up to the sellable 8 and 13-day M/A resistances which are currently at 48.71 and 48.98. In between is the 38.2% correction point of the January-February uptrend at 48.76. This was the area where buying dried up and the contract settled below this resistance level making shorts relaxed last night. How pre-mature this was. The contract is rallying hard this morning and is above the aforementioned resistance area. Shorts are highly recommended to go flat if they had not done already so because the market is turning. This change will be confirmed by a close over the 13-day M/A in which case there will be nothing wrong with going long. Should such a close take place the contract will be expected to go and test the 100-day contract M/A resistance around 50.58 where profit-taking is advised. A close over it would signal the continuation of the new up-trend and the same M/A but on the continuation basis at 51.95 will become the next upside objective. Be flat and go long on the close if the 13-day M/A is below tonight’s settlement.

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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.