PTT : Geopolitics could send it flying

On March 6 we said of PTT : it underwent consolidation most of last week, and may, at worst dip to 330 or so before a rebound to 344-346, if not 350-353 on the back of strong crude prices.

We got 350, and the chance of another test of such heights is certainly possible given the oil volatility of late. Closing at 344, the gap is to 342 and strong near term support from 336 to 340 will hold any  further profit taking as long as oil stays strong and above 103 for NYMEX CL.

If oil was to dip to 99-100, PTT at 334-335 will be very tempting.

If Saudi has issues this week or next, or Bahrain, and crude spikes another 10-15 bucks, PTT may well hit 364-366.

The Iranians have a win-win situation on their hands, and we feel the propensity for some market wrenching event in Bahrain/Saudi is increasing.