Technical & Fundamental Oil Reports Specialists

Follow us

Watch the short-term M/As on both contracts

Published Friday, May 8th, 2015

June ICE: It was said in yesterday’s report that new longs will only get concerned if the 5 and 8-day M/A supports had been closed below. Well, the contract settled 3-4 points above them but it is below this area this morning. The 5-day is currently at 42.26 and the 8-day is at 42.20 with the 13-day at 42.37. What should longs do as closing prices are the most important ones but somehow they will have to protect their positions should the market weaken further? Probably the most reasonable thing to do is to start taking loss on a prolonged intra-day break below the 42.10/06 support and go flat if the 5 and 8-day were closed below and short if the aforementioned range support area is above today’s settlement level. In that case Tuesday’s and Wednesday’s strength will have proved to be a bull trap. Should the 5 and 8-day be settled over it is advised to keep long positions and only get rid of them on a test of the 34-day contract M/A at 43.48. Strictly speaking and concentrating only on the closing price the contract is on the positive side and this will change if the 5 and 8-day were settled below. Keep a close eye on them together with the 42.10/06 support area.

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.