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Test of resistance on ICE and support on NYMEX

Published Wednesday, February 4th, 2015

Neither contract went the way they were supposed to yesterday. This, however, has not changed the underlying sentiment as based on yesterday’s performances no trend reversals have taken place. In other words, the ICE contract should still assault resistances and the NYMEX contract is more likely to test supports.

March ICE: Despite the loss of value yesterday longs have nothing to worry about, at least for the time being. This is because the crucial 45.20/45.09 support area was not tested, let alone closed below. This is where the range support, the weekly correction point and the 13-day M/A are. It is only recommended to protect long positions if this area is broken and closed below. Otherwise we should keep an eye on the 47.43/47.46 resistance level. The former is the 34-day contract M/A and the latter is the 200-day continuation M/A.

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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.