PVM Midday Report 13 June 2016
Headlines
OPEC hints at tighter oil balance in 2H 2016; output down 100,000 bpd in May
Chinese implied oil demand falls by 380,000 bpd in May y/y to 10.24 mbpd
Iran’s biggest oil…
The technical picture seems straightforward. Both contracts are still in correction phases. The price action around the 13-day M/As will provide us with an answer whether the prevailing trends will continue or reverse. A close below this support on ICE would mean the end of the uptrend and vice versa on NYMEX.
September ICE: The contract tested the 8-day M/A support yesterday and has fallen below it this morning. Longs are advised to take profit if the 61.8% retracement level of the latest downtrend in in sight. It is at 43.21. On the downside, losses on these long positions should be cut on a break and close below the 34 and 13-day M/As. They are at 40.69 and 40.62 respectively. In that case the uptrend that began at the beginning of July would be reversed and the contract will be expected to go down to the 38.50/40 range support area.
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