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Higher on ICE – Dips are a buy on NYMEX

Published Thursday, May 7th, 2015

ICE settled over all of its daily short-term M/As therefore yesterday’s close was a purchase. It seems that the trend is reversing on this contract. NYMEX tested its resistance level before drifting lower. Longs had the opportunity to take profit. The trend is still more on the bullish side so dips to supports or closes above resistances are buys.

June ICE: It was the close above the 13-day M/A yesterday that sent out the buy signal. This technical indicator is currently at 42.48 and has not been settled over since April 13. Additionally, the daily slow stochastics is positive with a bullish divergence on it so longs probably feel relatively confident and safe at the moment. They will get concerned if the 8 and 5-day M/As were broken and settled below. These M/As are at 42.28 and 42.34 at the time of writing. They are likely to take losses on a close below this area and they would turn bearish if the 42.10/06 range support were above today’s close. In that case the former downside target, the 40.49 range support will be re-validated as the next downside objective. On the upside, length is advised to be run up to the 34-day contract M/A which is around 43.54.

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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.