NYMEX Crude oil futures, June 10 (CLAM0):
The medium-term trend is up. In the short-term, CLAM0 is correcting lower. The long lower shadows on the last three candlesticks illustrate keen buying power around 85.00. As such, a shallow correction is possible: remaining above the 84.20-83.80 support area will keep the picture very strong and CLAM0 immediately positioned to challenge last week’s highs.
Invalidation: a close below 82.80 would inflict serious damage to the underlying uptrend.
Broader picture: the forward curve illustrates a widening contango and buying interest in December expiries (see page 2). These suggest that despite the bullish picture in the 1:1 June Heating Oil crack, a good part of the strength in WTI is mostly related to macro economic factors, and long-term investment interest, as opposed to intrinsic fundamentals.
Dollar, Gold, S&P: The ICE Dollar Index features early signs of weakness, and COMEX Gold and the CME S&P are in medium-term uptrends. These are all factors of support for the underlying uptrend in WTI.
Provided by NewEdge USA, LLC
ALL KNOWN NEWS AND EVENTS HAVE ALREADY BEEN FACTORED INTO THE PRICE OF THE UNDERLYING COMMODITY