Technical & Fundamental Oil Reports Specialists

Follow us

ICE is still negative. NYMEX has held supports.

Published Thursday, October 15th, 2015

November ICE: After the gap fill at 40.45 the contract drifted further lower yesterday. The daily slow stochastics is negative and all the daily short, and as a matter of fact medium and long-term M/As are above the price action. The November contract made a new all-time low yesterday and a fresh one at 40.25 this morning. Hopefully, all of the above was enough to convince anyone that the current technical status of the contract is bearish. This, coupled with the close below the 40.45 level yesterday gave us a new sell short signal. As the November contract is at its lowest level ever we have to turn to the continuation chart to look for support. Fresh shorts are recommended to take profit when the continuation low on September 22 at 39.46 is approached and sell again if closed below. It is advised to cut whatever loss there is to be cut if 40.45/50 is closed back above. Such a move will turn the technical picture from bearish to neutral-to-bearish. This means that further strength up to the 8 and 13-day M/As at 41.37/41 would be expected and as such would be a sell. As for today, watch 40.45/50 and only cover short positions if closed above or take profit when 39.46 is approached.

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.