Technical & Fundamental Oil Reports Specialists

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Watch the short-term M/As on ICE. NYMEX is positive.

Published Monday, May 11th, 2015

June ICE: The technical features of this contract are getting confusing. The buy signal that had been given on Wednesday proved to be a bull trap judging by Friday’s price action. The contract settled below all of the daily short-term M/As forcing longs to liquidate. To make matters even more complicated the 42.10/06 range support area was also settled below, indicating that Friday’s settlement was a sell. This morning, however, the price of the contract has jumped back above the aforementioned range support and also over the daily short-term M/As that are currently between 42.25 and 42.38. If the contract does not settle over the latter resistance shorts should keep their positions as in that case the chances of testing the 41.30 and then the 40.49 range supports will be high. On the other hand, on a close over the M/A resistances shorts are advised to cover and we will be quick to call the market range-bound. The lower end is the 41.30 range support. A close below this level is a sell for a further weakness down to 40.49. The top end is 42.94, the daily high last Thursday and a close above it is a buy. Under this scenario the test of the 34 and 100-day M/As at 43.46 and 43.96 will be expected. Watch the price action around the daily M/As today.

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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.