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ICE should go higher and NYMEX lower

Published Tuesday, February 3rd, 2015

It was suggested in yesterday’s report that ICE is more on the bullish side whilst the NYMEX contract is negative. Both contracts shied away from their respective resistance/support targets but these objectives are still valid. Crucial supports on ICE and resistances on NYMEX have not been closed below/above therefore it is still recommended to keep the long/short positions.

March ICE:  The resistance in question where longs were advised to take profit is the daily high on the March contract on January 14 and is at 48.00. Because of fresh developments it is recommended now to bring this profit-take level lower. The 34-day contract M/A dipped below the 48.00 range resistance and is presently at 47.62, very close to the 200-day continuation M/A at around 47.47. Longs are recommended to go flat if or when this area is in sight and go long again on a close over the aforementioned 48.00 range. Long positions should only be protected on a break and close below 48.20/09 (range and weekly c/p) and below the lowest of the daily short-term M/As, the 13-day at around 44.92. As long as this support area holds there is every chance of higher numbers and the eventual test of the upside objective at 47.77/62.

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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.