Crude oil has finally rallied back higher in the overnight session. We saw a rejected price at the 51.55 high before weakness stepped in. I’m not convinced that was the low quite yet and want to press to see if this market has more to run lower with all the demand concerns and negative impacts of the coronavirus outbreak on energy sector. I recommend the following short position:
SELL GCLH20 @ 50.55 or MARKET
BUY STOP @ 51.55 ($1,000 risk per contract)
BUY LIMIT @ 49.00 ($1,550 profit per contract)
Or trade a mini contract (QMH20) for half the risk/reward exposure – risk $500 to profit $775!
*Risk/reward are calculated before commissions and fees*
If you are interested in receiving these updates in real-time every day sent to your email,
then subscribe to the Jarboe Trading Journal!
30 MIN Crude Oil Bearish Signals – TAS Vega, TAS Navigator, and TAS Ratio all Pointing to Weakness and Bearish Confirmation
Subscribe to Jarboe Trading Journal
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.