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Positive ICE and negative NYMEX

Published Tuesday, September 1st, 2015

October ICE: This contract was closed yesterday so those who went long on Thursday are probably still long coming to the office this morning. Longs are advised to take profit on half of their positions at the 34-day continuation M/A at around 41.05 and go flat when the 38.2% retracement level of the recent downtrend at 41.69 is in sight. Going long is advised on a close over the latter. Selling short only makes sense if the daily short-term M/As between 40.45 and 40.30 are settled below. There is not much more to write about this contract. At the moment it is positive and a test of resistances is expected.

October NYMEX: A rather quiet day saw this contract test strong support levels before strengthening somewhat. Nevertheless the close was still below all of the short-term daily M/As meaning that there is nothing wrong with being short. The strategy, therefore, from last week has not changed. On a repeated test of the 2.643/38 range support area (recent lows on the October contract) it is recommended to go flat. On a sustained break below this area selling short is the way forward for a quick drop down to the 2.589 range.

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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.