Technical & Fundamental Oil Reports Specialists

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The contracts are still bearish

Published Wednesday, March 11th, 2015

It is still more logical to be short than long as resistances were not closed above on either contracts yesterday. Yesterday’s performances were not very convincing for bears but M/A resistances are still above the current price action therefore the chances are still on a further test of supports rather than resistances. In case of further strength, on the other hand, one should not be faint-hearted to go flat or even acquiring length should the contracts rally hard for whatever reason.

April ICE: The good news for shorts is that neither the 5 nor the 34-day M/As were closed above. These are currently 46.34 and 47.23. The bad news is that the 5-day has been broken back above this morning and the daily slow stochastics is trying very hard to turn north. On balance it is not unreasonable to stay short but it is highly recommended to cut back on these positions on a break over and go flat on a close over the 34-day M/A. Such a move would mean that the 8-day at 47.00 would also be settled above meaning that the test of the 13-day currently at 47.86 will take place.

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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.