Technical & Fundamental Oil Reports Specialists

Follow us

Test of support in ICE, resistance on NYMEX

Published Friday, May 15th, 2015

ICE closed below the 13-day M/A giving a sell signal yesterday and NYMEX above its important range resistance providing bulls with an opportunity to go long again. Being Friday one might want to choose carefully where to protect these fresh positions. Looking at the weekly charts of the contracts it seems that ICE will finish the week on a negative note whilst NYMEX will remain more on the bullish side unless some unexpected price movement occurs today.

June ICE: The 13-day M/A at around 42.43 was closed below last night but the contract has jumped back over it this morning. New shorts have nothing to worry about for the time being. They should start scaling back on their positions if the 5-day M/A at around 42.83 were broken and closed above. On a weekly basis this contract will stay rather gloomy if the 5-week M/A at around 43.03 remains above the price action. To cut a long story short the 42.83/43.303 resistance area is the one to watch today. On the downside it would be a great encouragement for bears if the price fell below the 42.10/06 range support. In that case the closest downside objective, last week’s lowest print at 41.30 will very likely be tested early next week. This is where shorts should cover and sell again if closed below.

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.