Refined Products Unable to Sustain a Sell Off

On January 22, 2013 by TradingDesk

Refined products were unable – again – to sustain a sell off Monday, and are rallying 1% this morning, despite a flat WTI contract. The US products are being led by the European Brent crude and Gasoil contracts, which are benefiting from a stronger Euro and a major winter storm which has blanketed much of the continent. Time spreads are also strengthening on a rash of refinery blips along the gulf coast. HO is through its first layer of technical resistance already this morning, but some caution is warranted since the contract has hit the $3.08 level 4 times in the past 2 months, and each time it dropped a dime over the next week. RBOB likewise has blown through the 100 day MA resistance level, and if it can break above the $2.85, there is nothing on the charts left to delay a spring rally targeting the $3.30 area.

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