Technical & Fundamental Oil Reports Specialists

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The bearish tide might be turning

Published Thursday, March 5th, 2015

With both contracts closing higher yesterday’s shorts are probably getting concerned. They are not panicking but they think that today might be a make-or-break day. Resistances were tested yesterday on the NYMEX contract and are being put under pressure on both sides of the Atlantic this morning. Strictly speaking the contracts are still negative but on an intra-day jump above these resistances it might be an idea to scale back on short positions and go flat if closed over. The highest of the daily short-term M/As are not far away from these stop levels so in case of further strength buy signals might be given at the end of the day. Should the contracts weaken then keeping short positions will be recommended.

April ICE: The resistance area in question is 48.48 and 48.93. The former is the 5-day M/A and the latter is the 8-day. In between is the 13-day at 48.74 and the 38.2% correction point of the January-February uptrend at 48.76. On a break and close above the retracement level shorts will cover.

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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.