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Test of resistance on ICE, support on NYMEX

Published Wednesday, July 8th, 2015

ICE is trying to re-establish the uptrend after testing and holding the daily short-term M/A supports yesterday morning. NYMEX, on the other hand, closed below the strong supports and now should be heading lower. Longs should stay long in the former and shorts short in the latter.

 

August ICE: The picture seems rather simple on this contract. The 13, 8 and 34-day M/As are all below the current price action suggesting that stronger numbers should be forthcoming. They are 42.66, 42.57 and 42.41 at the time of writing. Those with long positions are advised to use the lowest of these to protect their positions. On a close below the 34-day M/A it is recommended to take losses and even go short as in that case the test of the 41.56 range support should take place. On the other hand, a break above the 5-day M/A at around 42.91 would mean that the recent high at 43.50, the range resistance at 43.60/62, the 100-day M/A at around 43.64 and the range resistance and daily high on June 10 at 43.80 will shortly be in sight. Longs should take profit around the lowest of these resistances and start buying again on a close over the highest of them. The contract is more on the positive side and resistances should be flirted with shortly. This view is held whilst the 34-day M/A is acting as a support.

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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.