NYMEX:CLU2020   CRUDE OIL FUTURES (SEP 2020)
Here is a road map for this contract's price development until its expiry. As the futures curve is in contango, the CLU2020 , which is now the new front-month contract, is yet to test the supply around the 100% up area from its YTD low. Furthermore, 50% of the YTD range is also around the area where this contract is currently trading. These factors are expected to imply an increased interest to square off long exposure aka selling longs. So far, the price action is suggesting that there is new long interest working the orders of those selling their oil holdings. Nonetheless, there is a decent potential to slide down to the +50% area from YTD low. Caution is advised.
Comment: Market was held up by new long interest working the orders of prior buyers; now turned sellers, who are by now feeling the urge to re-enter. In fact, the best time to counter a trend is when the urge gets too prominent; with another 10% of upside here, one can start switching from buy-into-weakness approach to sell-into-strength.

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