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ICE has turned bearish – NYMEX is above its long-term trendline

Published Tuesday, February 17th, 2015

March ICE: It seems that the uptrend that started in mid-January has come to an end and the weakness seen on Friday was not just a one-off. Further selling pushed the price of the contract lower and the close below the 5-day M/A sent out a signal that it is time to sell short. Those who did so have probably taken profit this morning as the 8-day M/A support has been tested and briefly broken below. It is currently at 50.78 and is recommended to re-instate short positions if closed below. Should such a close take place we are off to the 50% c/p of the recent uptrend at 49.47 and to the 13-day M/A at around 49.10. A close below the lower of them is very bearish. On the upside those who are looking to go long should use the 5-day M/A resistance at around 52.30 to do so. If it were broken and settled above then we are likely see a run up to the recent high at 55.58. The chances of this happening is rather low as the contract is now expected to put supports under further pressure and eventually close below the 8-day M/A support.

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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.