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Change of direction on both contracts.

Published Friday, June 26th, 2015

The day before yesterday the ICE contract was above its daily M/As whilst NYMEX was the other way round. For this reason the former was more bullish and the latter bearish although some kind of care was advised on both of them. This care proved to be justified as ICE closed below the M/A supports effectively giving us a sell signal whilst NYMEX rallied and settled above the M/As flagging the go-long sign in our face.

August ICE: The sell signal was given because not only the daily short-term M/As but also the 34-day M/A was closed below. New shorts are recommended to take profit once the contract falls down to 41.56. It is a range support and the daily low on the August contract on June 18. The odds of testing this level will jump on an intra-day break below the 41.99/96 range support area. In case shorts cover at this lower level re-selling is only advised if another range support, the daily low on May 27 at 41.40 were settled below.

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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.