Technical & Fundamental Oil Reports Specialists

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Short on ICE and long on NYMEX.

Published Thursday, November 19th, 2015

The ICE contract was trying to turn bullish 24 hours ago. It did not live up to this expectation yesterday, weakened and gave a sell signal on the close. NYMEX Natgas that flipped positive on Tuesday evening hit its nearest profit-take level yesterday before turning south. It has not, however, settled below important supports, therefore there is nothing wrong with running reduced long positions.

December ICE: We had a nice demonstration about the power of the 13-day M/A yesterday. The contract opened there but failed to punch through let alone close above it. No buy signal was given. As a matter of fact quite the opposite took place. The sell-off took the price of the contract below the lowest of the daily short-term M/As and by the close a sell signal was provided. This morning we are experiencing some follow-through selling that had the contract test the recent low of 36.46. The low has been 36.56, close enough for shorts to take profit at least on part of their positions. On a break and close below this support the weekly low in July last year at 35.10 is expected to be tested where it is recommended to go completely flat only to resell if settled below.

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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.