WTI Crude Oil sold off yesterday along with the equity markets which were ignited by concerns of the largest Chinese property developer’s debt issues. Oil slid again briefly this morning but buyers have regained control back above $70 for November futures which has me interested in establishing a long position. Tight supplies continue to be the forefront of concerns in the energy sector here in the US with still about 18% of Gulf Coast oil production remaining offline. Additionally, strong oil demand has returned to Asia in the month of August and we expect this buying to continue in September/October which should further add upside strength to this market.
71.30 is my 1st resistance level (30MIN Chart) to target with the next (prior) resistance level on my Daily analysis not being until 73.00. We will maintain risk down under today’s low. 21-Day SMA (Pink MA) appears to be acting as support. Check out my full technical analysis below in the charts. I recommend the following trade:
BUY GCLX21 @ 70.25 or @ Market
SELL STOP @ 69.35 ($900 risk per contract) = Under Today’s Low (69.39)
SELL LIMIT @ 72.50 ($2,250 profit per contract) = Under September high (72.87)
Mini contract which is 1/2 the exposure per contract – QMX21
NEW Micro contract is now live too with 1/10th the exposure per contract – MCLX21
*Risk/reward are calculated before commissions and fees*
Call me if you need assistance with executing this trade – 312-706-7639.
30 MIN CL – TAS Ratio Flipping Positive + Updated TAS Box Support Level = BUY
DAILY CL – Bullish TAS Vega & Navigator + Bounce off of 21-Day SMA = BUY
Jace Jarboe | Futures & Options Broker:
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