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ICE closed below support. NYMEX is directionless at the moment but not for long.

Published Wednesday, November 11th, 2015

Not only was the opportunity provided for shorts to put some money in the bank yesterday but they were given another chance to short the contract on the close as a support area was settled below. No such thing can be said about NYMEX which failed to make any advances to the downside as well as to the upside. So, there is nothing wrong with being short on ICE and all we need to do on NYMEX is to be patient and probably action will have to be taken tonight on the close.

 

December ICE: We identified the 37.90/75 area just above which shorts were recommended to cover. This is where the continuation lows are on August 24 & 25. Not only was this area tested but also closed below. It worth having a quick look at the continuation and contract daily charts and also at the weekly one to get a good idea just how bearish this contract is. On a continuation basis the contract has hit its lowest level since 23 July 2014 this morning. The December contract is at its lowest ever level. All of the daily M/As are above the price action and the daily slow stochastics is negative. Bears are in control and a quick glance at the weekly chart reveals what they are eyeing. Since 37.75 has been closed below, the nearest level this contract is expected to fall to is the weekly low in July 2014 at 35.10.

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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.