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Watch 41.40 on ICE – NYMEX has strong support at 2.737/33

Published Tuesday, June 30th, 2015

August ICE: The contract weakened somewhat yesterday but did not get close enough to the 41.56 support, just above which shorts were recommended to take profit. This morning it has gone as low as 41.70 so it is debatable whether it has been close enough for bears to close out their positions. If yes, then great, if not then we should keep our fingers crossed that it will be tested again. In case of further weakness these short positions should be re-instated if the low on the August contract on May 27 at 41.40 were settled below. Should the market say enough is enough on the downside then shorts are highly recommended to cover on a close above the highest of the daily short-term M/As, the 8-day currently at 42.48 and they should even contemplate going long. There is not much more to say about this contract; it is currently bearish and a close below the 41.40 support will confirm this view. It will turn bullish on a close above the 8-day M/A resistance.

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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.