Ethylene Tanks, as Crude Oil and Naphtha Skyrocket

Ethylene MBEc1 future contract broke-down the 15 cts/pound support area last week, and it’s still basing at the 13 cts. level with no intentions to bounce.

Meanwhile, drivers such as Crude oil and Naphta are showing a remarkable strength. The naphtha UNc1 future contract is breaking-out above the 635 resistance area, and the crude oil CLc1 future contract just passed through the recent 69.5 US$ supply area heading higher into the 73 US$ resistance level.

Note that dollar DXc1 future contract is still extremely strong at 92 level, but right into an also strong supply area. So, some dollar pullback is likely to happen very soon, with the obvious crude oil bullish implications, to eventually reinforce the current crude oil up-move.