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ICE is bullish – NYMEX is gently bullish

Published Thursday, April 2nd, 2015

May ICE: After Tuesday’s downside correction this contract tested its next target on the upside but failed to close above it. It is the 100-day contract M/A at around 47.20. This morning, however, the contract opened with a huge upside gap and it is well above the 100-day M/A. If it stays that way then the close should be a buy as in that case targets above the current price levels will be green-lighted. These are daily highs at 49.45 and 49.80 followed by the 100-day continuation M/A at around 50.16. Fresh longs are recommended to take profit at the former two and go long again if the latter is settled above. On the other hand, a close back below the 47.20 level will be viewed as a massive failure to maintain the bullish momentum. Such a move would not flip the technical picture bearish but it would not make any technical sense buy dips to the daily short-term M/A, the lowest of which is the 13-day at 45.45. By any means, watch the 47.20 level today. Go long on a close above it and stay flat if the contract settles below that tonight.

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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.