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Still more negative

Published Thursday, October 29th, 2015

ICE gained a bit but did not challenge resistance levels. The November contract on NYMEX expired rather weak. This dragged the December contract lower but no supports were in sight. As far as technicals are concerned all we need is a semi-serious push on the upside for current shorts to liquidate but at the moment there is nothing wrong with holding short positions.

December ICE: It is still advised to expect the eventual test of the 38.86 range support. This is the continuation low on Monday. Shorts were recommended to take profit when this level is in sight. Whilst the advice is still valid it is somewhat altered. It might be logical to cover part of any short positions when Monday’s low on the December contract is tested (39.62) and take profit on the other half at the aforementioned support. A close below 38.86 is a sell again as in that case the continuation lows on August 24 and 25 at 37.70/95 will become the next downside objective. A rally and close above the 8-day M/A at around 40.39 is a warning signal for shorts to be prudent and cut back or go flat.

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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.