Technical & Fundamental Oil Reports Specialists

Follow us

ICE closed below support and NYMEX above resistance

Published Friday, May 1st, 2015

The contracts went their different ways as ICE closed below strong supports providing bears with a sell signal and NYMEX not only rallied up to resistances but actually closed above them. Being Friday we might see some kind of retracement but as long as the nearest resistance on ICE and support on NYMEX are not closed above/below these trends will remain intact.

June ICE: The support in question is the 42.06/10 area, the recent daily lows on the June contract. They were closed below therefore the next objective on the downside has been validated and is the 40.49, the daily low on January 20. The odds of testing this level will increase significantly if the 41.85/80 range support area is broken and closed below. Those who decided to short this contract at yesterday’s close are advised to protect the positions if the 8-day M/A, currently 42.27 were settled back over. Such a move would flip the bearish technical picture neutral. Monthly technicals are also negative. All the monthly M/As are above the current price action and the nearest monthly downside target is the 61.8% correction point of the August 2009-March 2013 uptrend from 18.20 to 76.15. It is 40.35. Expect softer numbers and the eventual test of the 40.49 level sometime next week.

to read the rest of the report, please click here

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.