May ICE: This contract is behaving in text-book fashion. It did not quite get down to its next objective yesterday but it has duly done so this morning. This target is the gap at 48.80 left on the daily chart on April 7. Since it has been filled this morning shorts are likely to be flat. They will be looking to short the market in one of the following two cases: either when the 48.80 level is closed below or when 5 and the 13-day M/A resistances are tested. In the former case they are advised to take profit if the 47.70 support is tested. This is the lowest print on a continuation basis since November 2010 therefore a close below this area will be considered rather bearish. Since the contract is undoubtedly in a downtrend rallies are also seen as selling opportunities.
Test of resistance in ICE. NYMEX is struggling at 13-day.
Test of resistance on ICE. NYMEX has hit is downside target.