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Pressure on supports

Published Thursday, November 5th, 2015

The advice is the same as 24 hours ago – be flat. There is a slight difference, though. It is that hopefully you are a little bit richer. Both contracts ran up to the 8-day M/A resistances and neither of them closed above. This morning the contracts are weaker so it only makes sense to have put some money in the bank and once again be an observer of the market until the next leg becomes clear.

 

December ICE: After the 8-day M/A resistance proved too tough a nut to crack yesterday the contract duly softened. It has tested and actually broken below the 38.86 range support. Those who shorted the market during yesterday’s run up will have taken profit by now. As far as current technicals are concerned there is nothing to do. Action only needs to be taken in one of three cases: 1.) sell short on a close below 38.86 for a fall down to 37.90/75, 2.) sell short on a rally up to the 13-day M/A which is currently 39.87 if it is not closed above for a weakness down to 38.86, 3.) go long on a close above the 13-day M/A for a jump up to 41.54, the 34-day contract M/A. Until one of the above takes place it is best to stay put and patient.

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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.