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.
control the market currently, bull
need to watch out the bottom of the correction.