Technical & Fundamental Oil Reports Specialists

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Both contracts are bearish

Published Tuesday, October 27th, 2015

Both contracts closed lower and both contracts settled below important support areas. This means that both of them have given fresh sell signals. The daily short-term M/As are well above the current price action and the daily slow stochastics are negative. The market on both sides of the Atlantic is bearish. As the front-month NYMEX contracts expires tomorrow and Thursday on ICE we will start concentrating on the December contracts.

December ICE: We singled out the 39.46/45 level on the November contract yesterday as the one that had to be settled below in order to get a new sell signal. Such a close duly took place and so bears have probably sold short again. Those who went short on the November contract are advised to take profit when the next set of support is in sight in the coming days. These supports are the daily continuation lows on August 24 and 25 at 37.90 and 37.75. November short positions ought to be protected on a close above the 5-day M/A at around 39.62.

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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.