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ICE failed at resistances but NYMEX has turned bearish

Published Tuesday, March 10th, 2015

To re-iterate the view from yesterday morning ICE was considered to be negative despite showing strength in the early hours of yesterday. NYMEX, strictly from the technical point of view, remained bullish but given the weakness of yesterday morning it was recommended to cut any long positions and go flat and even short in case supports were settled below. The view from 24 hours ago is still somewhat valid for the ICE contract and took a U-turn on NYMEX.

April ICE: The resistances above which it was not recommended to keep short positions were the 5 and 34-day M/As. As it turned out the close was right between the two. The former is currently at 46.60 and the latter is at 47.14. The contract is below both of them at the time of writing. If you scaled back on short positions based on last night’s close it is fine, there is nothing wrong with having a limited exposure. It is still advised to go completely flat if the 34-day M/A were settled above. Should that happen then the test of the 8 and 13-day M/As should take place. They are 47.42 and 47.97. A close over the higher of them is a buy.

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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.