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Both contracts are expected to put supports under pressure

Published Thursday, October 1st, 2015

Both contracts are negative. ICE settled below its important 100-day continuation M/A giving us a valid sell short signal. NYMEX shorts were more than happy to put some money in the bank when support was in sight and re-sell on the close when this support was settled below. To put it simply, the contracts are negative and as things stand now further weakness is expected to take place.

November ICE: The new front-month contract is trying very hard to take over the role of the expired October. It settled below the 100-day continuation M/A which is currently at 41.72. Bears who went short on last night’s close are now anticipating further softness and selling that should have the market fill the gap left on the continuation chart at Tuesday’s expiry. It is at 40.45 and shorts are advised to cover just above it.

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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.