A fast correction toward our target price 42.50-43.00 area last week, daily and hourly lower low. Only Friday appear a weak buy signal. Price dropped for 6 days. Transaction volume
is very small. Let see if 200 MA can get support or not. One interested phenomenon : Spot market price drop price speed lower than future market price. Their spread now enlarge to near USD2.00 /bbl from 1.00 recently. We enter our long position. But we might adopt a Hit and run operation strategy. The price might forming a W bottom. Test low will come back again. Rebound target might be 43.8 or 44.00, then we will take profit, and reenter long position when price might retest 42.00, even 40.00.
- After one month strong US dollar
move, the US dollar
seems want to take a rest.
- Physical SPOT market demand is still strong.
- Production of the Refinery in US still keeping their normal capacity, indicating that real economic is not so bad.
-MA50 > MA20 > MA10 > MA5
-non-stop 6 days drop the price, only Friday short position take profit causing price rebound.
Product still keeping high export record.
-Transaction Vol still low.
Overall, bear control the market currently, bull need to watch out the bottom of the correction.