WTI Crude Oil has stabilized since last week’s strong selloff after failing to break higher above $43/barrel in October. Both API and EIA have now reported bullish inventory data presenting draw-downs for the week ending September 11th (EIA Weekly Status Report Summary). I expect the oil market to continue to rebound and retest the previous $42-43 range that the market was unable to break previously. Technically, I’m seeing bullish momentum to the upside shorter-term and oversold exhaustion on a longer-term scale which confirm a breakout higher. I recommend the following:
BUY GCLV20 @ 39.80.00 or @ Market
SELL STOP @ 38.95 ($850 risk per contract)
SELL LIMIT @ 42.70 ($2,900 profit per contract)
The MINI contract is 1/2 the exposure per contract – QMV20
*Risk/reward are calculated before commissions and fees*
30 MIN CL – Bullish TAS Vega & Navigator = BUY
Daily CL – Recent Bearish Run Looking Oversold & Now Trading Back Above Previous TAS Daily Support Level @ 39.78 = BUY
Jace Jarboe | Futures & Options Broker:
Phone: 312-706-7639
Email: jjarboe@danielstrading.com
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