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ICE has tested its support – NYMEX should follow suit

Published Friday, April 24th, 2015

Both of the contracts settled lower yesterday but neither of them got close to their respective supports where profit-taking on short positions was recommended. This morning NYMEX is more or less unchanged whilst further selling pushed the price of the ICE contract close to its downside target so hopefully yesterday’s shorts are flat and wealthier today. Supports are expected to come under further pressure.

May ICE: The low of the morning has been 43.65 whilst the downside target is the low on the May contract on March 23 at 43.52, close enough for bears to cover. Should this support be broken below on an intra-day basis the contract will certainly dip to 43.30, the contract low on March 6. A close below this support is a sell again. Such a move will green-light the next target on the downside. It is 41.75, the monthly high in January 2010. All the daily short-term M/As are above the market and the daily slow stochastics is negative.

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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.