Energy Prices Continue To Set New Lows For The Year

On June 22, 2012 by TradingDesk

A string of negative economic headlines caused an avalanche of selling Thursday, forcing stocks to their 2nd worst day of the year. Overnight manufacturing data from across the globe was joined by rising jobless claims and a weak Philly Fed manufacturing report in the US during the morning. An afternoon call by Goldman Sachs to sell the S&P 500, and later-substantiated rumors that Moody’s would be downgrading the ratings of many large banks, helped accelerate the move. If there was a silver lining in all of this, it’s simply that with all of this news, the selling could have been much worse.

Energy prices continue to set new lows for the year, with crude leading the way as WTI settled below $80 for the first time since September, and Brent settled below $90, for the first time since December 2010. Products have some longer term support layers between $2.44 and $2.50, which is the next likely resting point for prices after this week’s furious selling. If this next layer of support is broken however, the next target on the charts is $2.00.

CLICK HERE for a PDF of this morning’s charts

 

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