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Test of resistance on ICE. NYMEX is on holiday.

Published Thursday, November 26th, 2015

We might have two quiet days due to the Thanksgiving holiday in the US and might not be able to do anything on the NYMEX contract. It never tested its support or resistance levels yesterday let alone close below/above them. On the other side of the Atlantic no test of resistance took place therefore running long positions is the way forward.

 

January ICE: All the daily short-term M/As are below the price action and are acting as supports. They are between 37.97 and 37.81. Bulls who went long on Tuesday’s settlement are recommended to use the lowest of them, the 13-day, to protect positions and actually go short if closed below. On such a move the recent lows at 37.01 and 36.96 are likely to be revisited. Profit ought to be taken on part of any long positions when the high on the January contract on November 17 is in sight. It is 39.07. On a break above it the market is expected to be heading towards the 34-day contract M/A at around 39.65 where going flat is recommended. Currently there is nothing that suggests that these upside targets will not be reached and the positive status of the daily slow stochastics probably makes longs feeling rather confident in higher numbers.

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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.