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ICE is still negative whilst NYMEX has turned bearish

Published Tuesday, April 21st, 2015

There was an opportunity provided for ICE shorts to start taking profit on their positions whilst NYMEX longs were forced to abandon their positions as this contract settled below support levels. As we stand right now both contracts are expected to put support areas under pressure but bears will need to be ready to be flexible and take losses in case prices decide to change course and go disappointingly higher.

 

May ICE: It has been advised for quite some time that shorts should start taking profit when the 44.00 range support is tested. This is the continuation low on January 20. The move duly happened yesterday as the contract fell as low as 44.03. This is where selling dried up and the remaining of any short positions could not be covered since the next support area, the contract low at 43.52 on March 23 was not in sight. Whatever positions are left it should be closed out on a test of the aforementioned 43.52 support, which will become increasingly likely on an intra-day break below the 44.00 support. In case of stronger numbers losses are advised to be cut on a break and close over the 34 and 8-day contract M/As.

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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.