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:
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.
The StoneX Group Inc. group of companies provides financial services worldwide through its subsidiaries, including physical commodities, securities, exchange-traded and over-the-counter derivatives, risk management, global payments and foreign exchange products in accordance with applicable law in the jurisdictions where services are provided. References to over-the-counter (“OTC”) products or swaps are made on behalf of StoneX Markets LLC (“SXM”), a member of the National Futures Association (“NFA”) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. SXM’s products are designed only for individuals or firms who qualify under CFTC rules as an ‘Eligible Contract Participant’ (“ECP”) and who have been accepted as customers of SXM. StoneX Financial Inc. (“SFI”) is a member of FINRA/NFA/SIPC and registered with the MSRB. SFI does business as Daniels Trading/Top Third/Futures Online. SFI is registered with the U.S. Securities and Exchange Commission (“SEC”) as a Broker-Dealer and with the CFTC as a Futures Commission Merchant and Commodity Trading Adviser. References to securities trading are made on behalf of the BD Division of SFI and are intended only for an audience of institutional clients as defined by FINRA Rule 4512(c). References to exchange-traded futures and options are made on behalf of the FCM Division of SFI.
Trading swaps and over-the-counter derivatives, exchange-traded derivatives and options and securities involves substantial risk and is not suitable for all investors. The information herein is not a recommendation to trade nor investment research or an offer to buy or sell any derivative or security. It does not take into account your particular investment objectives, financial situation or needs and does not create a binding obligation on any of the StoneX group of companies to enter into any transaction with you. You are advised to perform an independent investigation of any transaction to determine whether any transaction is suitable for you. No part of this material may be copied, photocopied or duplicated in any form by any means or redistributed without the prior written consent of StoneX Group Inc.
© 2023 StoneX Group Inc. All Rights Reserved