Crude oil started the new year off strong last week while breaking back into the $50 range for the first time since February 2020. A lot of bullish fundamental factors are the cause of this rally including: the surprise additional production cuts from Saudi Arabia, the distribution of COVID vaccines, expected additional stimulus from the new party in Washington, and lastly the EIA reported last week the largest inventory draw since August 2020. In the overnight we saw energies retreat lower with US equities but appear to have found support @ 51.50 on the February contract. The long-term trend is still bullish and I think momentum will return to the upside for another spike ahead this week so I’m establishing a long position in agreement with my technical levels outlined below. I recommend the following:
BUY GCLG21 @ 52.00 or @ Market
SELL STOP @ 50.70 ($1,300 risk per contract)
SELL LIMIT @ 55.00 ($3,000 profit per contract)
OR trade the Mini contract which is 1/2 the exposure per contract – QMG21
*Risk/reward are calculated before commissions and fees*
Call me if you need assistance with executing this trade – 312-706-7639.
30 MIN CL – Bullish TAS Vega & TAS Ratio w/ Support @ 51.59 = BUY
DAILY CL – Bullish TAS Vega, TAS Navigator, and TAS Ratio = BUY
Jace Jarboe | Futures & Options Broker:
Phone: 312-706-7639
Email: jjarboe@danielstrading.com
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