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Nothing to do on ICE – NYMEX is still bearish

Published Tuesday, April 14th, 2015

For more than a week now the 100-day contract M/A resistance on ICE has not been closed above and the 13 and 34-day M/A supports have not been closed below. It is therefore recommended to stay put and wait for developments on this contract. NYMEX is still more bearish and there is nothing wrong with being short. The test of the nearest downside objective is expected as no resistances have been seriously tested.

May ICE: The 100-day M/A resistance is currently at 48.86. A close over it is a buy. On such a move the high on April 2 at 48.66 will probably be tested where profit-taking is advised. A close over the latter is also a buy as in that case the 49.45 range resistance, the daily high on February 26, will become the next target. On the downside a close eye has to be kept on the 13-day M/A which is 46.27 at the moment. A close below this support will push the price of the contract down to the 34-day at 46.69. A close below the latter is really bearish and as such is a sell. In that case the contract will be expected to move down to the 43.52 range support, the daily low on March 23.

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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.