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Test of supports on ICE – Resistance on NYMEX

Published Monday, May 18th, 2015

Technicals were more on the negative side on the ICE contract on Friday morning and bullish on NYMEX. Both contracts produced some gains some at the end of last week so NYMEX did remain bullish whilst the bearish forecast on the ICE contract has not changed either as no significant resistances were closed over.

June ICE: After the 13-day M/A was settled below on Thursday this contract turned rather bearish. It was suggested on Friday that it would remain negative as long as the 5-day and the 5-week M/As were settled below. It turned out to be the case so shorts probably stayed short. The 5-week M/A is less relevant now than it was on the last day of the week so it is the 5-day M/A that should be used to protect short positions. It is currently at 42.67 and it is recommended to go flat if closed above. The downside objective, the 41.30 range support and daily low on May 5 is still valid and the odds of hitting it will jump if the 42.10/06 range support area is broken and settled below. In a nutshell, watch the 5-day M/A on the upside and the 42.10/06 range support on the downside and take profit on a test of 41.30 or take losses on a close above 42.67.

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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.