Technical & Fundamental Oil Reports Specialists

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ICE closed over resistance. Watch the 5-day on NYMEX.

Published Wednesday, June 3rd, 2015

There was a brief test of assorted M/A supports on ICE yesterday. They held and formed the basis for a rally which took the price of this contract over the highest of these M/As. At the close we had a buy signal. On NYMEX the crucial support was tested with a little bit of goodwill or the contract just failed to test it if one wants to be rigorous. By any means the rally that followed took the price over the 5-day M/A but the contract settled slightly below this resistance.

 

July ICE: The positive close is being followed through this morning. The contract opened and still is above the 34-day contract M/A which is currently at 42.48. Those who went long last night might consider taking profit on part of their positions, however small that profit is. It is then recommended to go flat on a test of the 43.31 range resistance. Such a test will become a real possibility if the 34-day continuation M/A at around 42.93 is broken above today. If the current optimism evaporates for whatever reason then the remainder of any long positions should be protected on a close below the 5-day M/A at around 42.06. Under the latter scenario the technical picture would turn neutral and it would only be bearish again if the 8 and 13-day M/As at 41.81/82 were settled conclusively below. Judging by yesterday’s performance resistances should be under pressure 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.