Technical & Fundamental Oil Reports Specialists

Follow us

Both contracts are bearish

Published Wednesday, October 28th, 2015

With both contracts gaining only a tiny bit of value and not troubling strong resistances, shorts have remained shorts. Both contracts are still more on the negative side and as things stand at the moment supports should be under renewed pressure. The only change is now that on ICE it is advised to roll any existing November short positions into December as the expiry is tomorrow.

 

December ICE: No supports were in danger of being tested and no resistances were troubled either. All the daily short-term M/As are above the current price action and the daily slow stochastics is still negative. Bears remain in control of the market. It is still recommended to take profit on short positions when the continuation low from Monday is tested. It is 38.86. The odds of hitting this support will increase on a break below the 39.46/45 range support. It is then logical to sell short again if 38.86 is settled below for a dump to the 37.90/75 range support area, the continuation lows on August 24 and 25. Shorts are recommended to protect their positions on a break and close above the 8-day M/A at around 40.54 only to sell short again if the 13-day at 40.99 is tested but not closed above. If it were then the contract would turn bullish, something that is not expected to happen in the immediate future. Instead, we should soon see the test of the 38.86 range support level.

to read the rest of the report, please click here

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.