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Test of resistance on ICE, support on NYMEX

Published Monday, February 2nd, 2015

Pre-weekend position management prevented the contracts from testing their respective targets as ICE closed lower despite showing bullish characteristics and NYMEX was nowhere near its support level that it was expected to test. Order seems to have been restored this morning as ICE is trading higher and NYMEX is edging closer to its ultimate downside objective.

March ICE: Although the contract lost some value on Friday it did not close below any of its daily short-term daily M/A support or below its 45.20/09 range/c/p support area. The fact that 45.09 held is rather important as this is the weekly 61.8% correction point of the July-November uptrend. After holding these supports the contract is duly climbing higher again this morning and the upside objective remains valid although now it is a bit lower than on Friday. At the end of last week it was recommended to take profit on long positions in case the high on the March contract on January 14 is tested at 48.00.

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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.