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Test of resistance on ICE and support on NYMEX

Published Thursday, September 3rd, 2015

ICE tested resistances but has not closed above them. NYMEX tested supports but has not closed below them. This suggests that being flat is only reasonable at the moment. Following this logic a close above the ICE resistance is a buy and in case the NYMEX support is broken and closed below going short is the way forward.

October ICE: After getting a buy signal last Thursday profit was hopefully taken in two steps; on a test of the 34-day continuation M/A a day later then when the 38.2% correction point of the July-August downtrend at 41.69 was in sight this Tuesday or Wednesday. Since the latter has not been settled over no fresh buy signal has been given. As a matter of fact in the process of testing this resistance the 34-day contract M/A currently at 41.96 is getting closer to the c/p resistance so it might make sense to start acquiring length again when this medium-term M/A resistance is settled above. Going fully long will make sense if or when the 100-day continuation M/A at around 42.28 is conclusively settled above.

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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.