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No targets either way

Published Friday, October 9th, 2015

No clues were provided on either contract as to which direction the next leg would be. Resistances were not in sight and important support was only briefly broken below on ICE but closed over whilst it was not really bothered on NYMEX. Being flat is the way forward as there are no technical targets either way on the contracts. With the help of the daily slow stochastics, M/As and weekly technicals we shall take a view below as to which direction potential breakouts could occur but once again it is highly recommended to be flat and only react when supports/resistances are closed below/above.

November ICE: A close above the 34-day contract M/A at 42.73 is a buy for a rally up to 44.38, a range resistance and the daily high on September 2. A close below the 100-day continuation M/A at 40.69 is a sell for the continuation gap fill at 40.50. The contract settled and is still above its daily short-term M/As that are between 42.96 and 42.71. Its daily slow stochastics is positive. The weekly short-term M/A supports have been tested over the course of the week and they have held. They are between 41.19 and 40.88. All these point to the test of the crucial resistance rather than support. Nevertheless going long is only advised if or when the 34-day contract M/A 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.