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Test of support on ICE and resistance on NYMEX

Published Friday, April 17th, 2015

The question yesterday morning was whether Wednesday’s rallies were bull traps or trend-reversals. Well, as it turns out it was probably the former for ICE and the latter for the NYMEX contract. ICE closed below supports yesterday giving us a fresh sell signal whilst NYMEX settled over all of its daily short-term M/As effectively ending the recent downtrend.

May ICE: Wednesday’s strength was followed by the resumption of the downtrend as the contract headed straight back to where it had come from. It settled below the daily short-term M/As and also back below the 34-day M/A that is currently 45.50. In other words, a fresh sell signal was provided. New shorts are recommended to protect positions if the lowest of the daily short-term M/As, the 5-day at around 45.69 and then the 8-day at around 45.88, are settled over. Going long would only make sense on a definite close above the 13-day at around 46.10.

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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.