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There are no targets on either contract

Published Monday, February 9th, 2015

March ICE: By the look of it the big rally on Thursday was misleading. Although it helped longs to take profit on existing positions but it also trapped them into new ones as it settled above the 48.00 range resistance. No test of resistances took place on Friday, instead the contract started to drift lower. It was advised on Friday morning to remove part of any long positions on a break and close below the 200-day M/A (47.43) and go flat on a close below the 34-day M/A (46.89). The first one took place but the 34-day M/A held by the close. It has, however, been broken below this morning so it would only make sense to be flat now, especially given that the 5 and 8-day M/As at 46.79 and 46.57 are also above the current price action. A close back over the 48.00 range resistance is a buy again as in that case the 49.50 upside objective will be validated again. In case of further weakness the price action at the 13-day M/A at around 45.75 will be crucial. If it is tested and holds there will be nothing wrong with going long. If it is closed below the opposite position should be taken as in that case the test of the 43.77/75 range support will be expected. On the upside watch 48.00 and on the downside the 13-day 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.