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ICE is trying to break higher. Test of supports on NYMEX.

Published Wednesday, December 2nd, 2015

ICE has put in a good performance allowing bulls to take profit on the rest of their positions. The next resistance level, however, has not been settled over therefore it is recommended to be flat. NYMEX shorts who were forced to cut back on their positions on Friday are still partially short as resistances were not troubled. Yesterday’s failure to punch higher probably means that now supports are going to be under pressure.

 

January ICE: After the range resistance at 39.07 was firmly in sight on Friday the contract took the next step and ran up to the 34-day contract M/A. Not only up to here but also above. This provided longs with a great opportunity to go flat. Since this resistance, which is at 39.23 at the time of writing has not been closed over these long positions were not re-established. Needless to say that if it is below tonight’s close going long in recommended. In that case the next logical level the market should be heading to would be the 38.2% correction point on the January contract of the September-November downtrend from 46.30 to 36.95 at 40.51. Despite yesterday’s failure to close over the 34-day M/A resistance the trend is still up. And if the trend is up not only closes over resistances but dips to support are considered buys. Such a dip would be a retracement back to the 8-day M/A which is at 38.40. These longs are recommended to cut losses and even go short on a close below the 13-day M/A at around 38.18 or on a rally back up to the 39.07 range and 34-day M/A resistances.

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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.