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Both contracts are stronger but still below resistances

Published Wednesday, March 4th, 2015

The contracts had valid targets on the downside but neither of them were seriously tested. The NYMEX contract settled higher on the day and further buying is pushing the price even higher this morning. ICE, despite losing value yesterday, is getting stronger, too. This fresh buying, however, has not sent the contracts up to crucial resistances. Shorts should remain short and they are only recommended to protect their positions if these resistances are broken and settled over today.

April ICE: Profit was hopefully taken on half of any short positions yesterday when the 200-day continuation M/A at 47.83 was in sight. This support was broken and closed below but neither yesterday nor this morning is the contract likely to go down to its next support area, the 47.08/00 range as the lowest print has been 47.26. The contract has strengthened this morning and it is back above now the 200-day M/A. On renewed weakness it is recommended to go flat if the aforementioned range support is in sight and only sell short again if the 34-day contract M/A at 46.81 were settled below. Shorts are advised to protect the rest of their positions on a break and close above the 48.76/85 resistance area.

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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.