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ICE is still under pressure – NYMEX is having second thoughts

Published Tuesday, August 4th, 2015

Yesterday’s bearish sentiment is still valid on ICE whilst the NYMEX contract might be in the process of seriously denting the bears’ confidence. It is not a foregone conclusion yet but it is recommended to run limited short positions on this contract whilst on ICE shorts had the opportunity to take profit yesterday or this morning, however small it was, and now they are waiting for the next set of supports to be settled below to re-instate those positions.

September ICE: It was suggested in yesterday’s report that those who did not short the contract based on the inconclusive negative settlement on Friday should sell some short during the day. Profit was then said to be have taken just above 41.50, the contract low last week. Yesterday’s low was 41.57 and this morning the lowest print was 41.50. However short you were it is now only logical to be flat. The trend is still down therefore rallies to resistances or closes below supports are still viewed as selling opportunities. If you see the 5 and 8-day M/As at 42.11/16 in sight it might be an idea to go short for a repeated test of the 41.50 range support. These positions are to be protected on a close above the 13-day at around 42.39 in which case even going long will look attractive

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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.