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ICE is positive again – NYMEX is still moving sideways

Published Tuesday, March 24th, 2015

We started calling the NYMEX contract range-bound more than a week ago and ever since the contract has been true to this description. The ICE contract spent the end of February softening only to start picking up at the beginning of March but it has been failing to make advances over the last week or so. It also failed to test supports yesterday so unless there is a significant movement on it today it might join its US counterpart in the group of undecided contracts.

April ICE: The test of the 44.55 range support was expected yesterday after Friday’s weakness but all the contract managed was a fall down to 45.25 before turning higher. Further buying is pushing the price over the daily short-term M/As this morning with the daily slow stochastics positive, if anything. These M/As are between 46.43 and 46.34. The fact that they are below the current price action could mean that the test of the 34-day M/A is going to take place shortly. It is at 47.81. On the other hand, on a failure to settle over these M/A supports today, the contract will be considered range-bound and these M/As are going to lose relevance with no action being advised unless the bottom or top end are closed below/above.

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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.