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…
ICE finally settled below its crucial support area giving us a sell signal. Further downside pressure is anticipated on this contract. NYMEX tested, penetrated and closed over its nearest resistance but shied away from the next one. Some profit should have been taken on existing long positions and further strength is expected on this contract.
September ICE: Last night’s settlement was the lowest ever on the September contract and the lowest for a year on a continuation basis. It was bearish, especially considering the fact that the 40.45/35 range and monthly c/p support was above last night’s settlement. The next target south has been validated – the 200-month M/A currently at 38.79. The odds of reaching this target will be much higher if the lows of Monday and yesterday were broken and settled below. These are 40.11 and 40.20. And where to protect these new short positions? Logic dictates that part of it should be covered on an intra-day break above the 41.29/35 level, the former range support and the 13-day M/A and going flat would make sense if the 8-day M/A, currently at 40.75 and yesterday’s high at 40.80, were settled back over. As all the daily M/As are acting as resistances and the daily slow stochastics is negative this is the more unlikely scenario. Instead, expect further weakness.
to read the rest of the report, please click here
Subscribe to News