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Published Wednesday, July 15th, 2015

It was recommended to be flat on both contracts and wait for developments although we concluded that the market is if anything more bullish. Neither of the two contracts lived up to their slightly positive expectations but they did not nosedive either. In a way, yesterday’s performances helped clarify the technical picture in that there are clear levels above/below which it is advised to go long/short and there are clear levels where any potential position should be protected.

August ICE: At times this contract looked encouraging as it traded above the 43.95/44.00 weekly range resistance area. It was, however, demonstrated again that the closing prices are the most important ones as far as technicals are concerned as late selling pushed the price below this resistance area and also below the 5 and 8-day M/As. So, what we have learnt is that a close above the 43.80 range resistance level, the daily high on June 10, is probably a buy and should the 44.00 resistance be settled above it is definitely recommended to acquire length. These longs then ought to take profit on half of their position on the test of the 44.51 100-day M/A resistance, put them back again if closed above and try and run the position up to the 46.08 range 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.