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ICE support is under pressure.

Published Monday, November 23rd, 2015

Both of the contracts lost values on Friday but it was only NYMEX that gave a genuine sell signal. ICE settled above important support level but it is being put under significant pressure this morning. A close below that would be bearish and as such a sell.

December ICE: The support level in question is 36.46. It is the low on the December contract on November 12 and the lowest print ever. Obviously, it will be recommended to sell short if settled below. Since the December contract has not been lower than that we have to turn to the continuation charts in search for supports. Such a move would green-light 35.10 as the nearest objective below the price action. This is the weekly continuation low in July 2014 and also the lowest print for 5 and 1/2 years. Should the latter be settled below in the near future it would be very-very bearish. On the upside the formula seems simple. There are no targets higher whilst the 13-day M/A at around 37.50 is acting as resistance. A close over it is a buy and in that case we shall have the slight matter of negotiating the 37.75/90 range resistance area and then off we go to last week’s high of 38.60 and the 34-day contract M/A at 39.60 where longs are advised to take profit. At the moment, it is recommended to be flat and sell short on a close below 36.46 or go long if the 13-day M/A is 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.