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Support is being tested on NYMEX – Watch the M/As on ICE

Published Monday, April 27th, 2015

Neither of the contracts weakened on Friday as both settled somewhat higher. At the moment the end-of-week performance is viewed as a pre-weekend retracement in an otherwise downtrending market. It is confirmed by the weaker price on the NYMEX contract this morning whilst ICE is right on its sellable resistance level at the time of writing. From today onwards we shall focus on the June contracts as May NYMEX expires tomorrow and ICE on Wednesday.

June ICE: The early weakness on Friday morning took the price of this contract down to the 43.52 range support and hopefully shorts managed to cover as the market strengthened during the latter part of the day. The same support on the June contract is 42.10 and Friday’s low was at 42.06. We are experiencing further buying this morning which is taking the price above the 5-day M/A around 42.81 based on the June contract and to the sellable 8-day M/A which is currently at 42.93. Those who decide to short the contract up here are strongly advised to protect their positions on a close over the 13-day M/A resistance which is at 43.54 at the time of writing. In case of further buying bulls are recommended to go long on a close above the 34-day M/A at 43.74.

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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.