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ICE held support; NYMEX closed below it

Published Tuesday, December 15th, 2015

Both contracts lost values yesterday but the end results were quite different. ICE held its crucial support level but NYMEX has settled below it. It is still advised to be flat on ICE and at the moment there is nothing wrong with re-establishing short positions on NYMEX.

 

January ICE: It is the 35.10 support that ought to be in focus. This is the weekly low in July last year and it was briefly broken below yesterday but by the close the price of the front-month contract jumped back above it. In case it is closed below today bears will feel comfortable of selling short again. On such a move we would maintain our view from yesterday that the nearest downside objective is 30.75, the monthly low in May 2006. The upside has not changed either. The sellable 8-day M/A resistance is some way above the current price level. It is at 36.52 at the time of writing and a rally up there is a sell provided that it is not closed over. If it is then we shall see the 13-day M/A tested in the not so distant future but only a close over the latter at around 37.29 will be considered bullish. Until then expect supports to be under pressure and as things stand now the 35.10 level is expected to be settled below soon.

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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.