Technical & Fundamental Oil Reports Specialists

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The markets are on the bullish side

Published Wednesday, May 13th, 2015

Maybe some order is being implemented in the market. If this observation is correct and the contracts start trending then this order is a bullish one, at least judging by yesterday’s price action. Both contracts tested resistances but did not close above them. Nevertheless, the daily short-term M/As are below the price action and the daily slow stochastics are positive. These suggest resistances will be under further pressure.

June ICE: It was recommended in yesterday’s report that those who decided to go long after Monday’s strong rally should take profit on part of their position on the test of the 34-day contract M/A that is currently at 43.49. This test duly happened but the aforementioned resistance level was not broken, let alone closed above. Maybe it will today. Should we see an intra-day jump over it the market should head straight towards the 100-day contract M/A at around 43.85 where longs are supposed to go completely flat and only re-instate their positons if the latter is settled over. Under this scenario the 45.25 range resistance, the daily high on the June contract on April1 4 will become the next objective.

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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.