Technical & Fundamental Oil Reports Specialists

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ICE gave us a buy signal. NYMEX gave us nothing.

Published Friday, August 28th, 2015

It has to be said that after yesterday’s performances the technical status of the contracts is pretty clear and straightforward. The sell signal on ICE on Wednesday turned out to be unjustified as the contract rallied and closed over significant resistance and provided us with a buy signal. NYMEX did not bother to seriously challenge either its support area or resistance levels therefore the only way forward in this contract is to be flat and potentially act on the close.

October ICE: When I say that the technical state of this contract is quite clear I really mean that it is clearly uncertain with some upside potential. The fact is that the 13-day M/A was closed above and a genuine buy signal was given. It is now advised to take profit on half of these long positions when the 34-day continuation M/A at around 41.10 is in sight and go flat on the test of the 41.69 correction point resistance. The 5 and 8-day M/As are jammed together at 40.24 and 40.21. Half of any fresh long positions should be liquidated on a sustained intra-day break below this support area.

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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.