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Crude Oil Futures Trade Above $50 for the First Time Since February 2020

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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.

If you are interested in receiving these updates in real-time every day sent to your email,  subscribe to the Jarboe Trading Journal >>

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
Broker Bio

 

Find More Opportunities in Crude Oil Futures Like This One

This is an example of one specific trade, but navigating today’s markets can be tough for new and experienced traders alike. If you’re actively trading futures and are looking for the insight, education, and empowerment to make better trades, join the Jarboe Trading Journal for the guidance you need. In the meantime, download my free Introduction to Oil and Gas Futures guide to expand your knowledge of the energy futures markets and prepare for the next opportunity.

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Risk Disclosure

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About Jace Jarboe

Jace Jarboe is a Futures & Options Broker with Daniels Trading. He is a licensed Series 3 and Series 34 broker with the National Futures Association (NFA). Prior to joining the futures industry, Jace attended Indiana University where he received a Bachelor of Arts degree in Economics. Since 2016, Jace has been devoted to learning all aspects of the futures industry and is dedicated to helping his clients achieve their short and long term trading goals. Jace assists clients in a variety of commodity sectors, with both speculating and hedging, and through utilizing futures, options, spreads, and spot FX. He uses his combined technical and fundamental analysis trading style to identify the best market trends and opportunities available. Jace aims to present trade recommendations which are most suitable for each specific client depending on their risk tolerance and intended trade duration. He has worked with hundreds of clients in his experience. In 2020, Jace launched his own trading advisory to further promote his futures markets expertise to a wider audience. This market newsletter is called the Jarboe Trading Journal and focuses primarily on presenting real-time trade recommendations to subscribers.