As noted last week here, last week’s Stopping Point at/near 92s holding as support would result in price discovery potential to 93.50/94.50s. The market continued the recent buyside directional phase early this week toward the Weekly 2nd Std Dev High, 94.40s, achieving the Stopping Point midweek at/near the 94.80s.
The Stopping Point developed midweek in the form of a Selling Tail, 94.85s-94.60s, indicating the capping of the market by the longer term sellside at the prior key supply cluster.
The market balanced, 93.50s-94.60s, before breaking out lower and beginning a new directional phase as long liquidation occurred. The market sold off toward the Weekly 2nd Std Dev Low, 91.03s, continuing lower into the Mar cluster, 90.40s-91.30s, achieving the Weekly Stopping Point at/near 90.25s, balancing 90.25s-91.80s into the week’s close.
Next week’s response at 90.25s will be of focus. IF 90.25s hold as support, price discovery potential to 92.70s/93.40s. IF 90.25s fail as support, price discovery potential to 89.70s/87s.
- China-Russia & Oil Agreements. (Platts)