A Big Gap in the WTI Crude Oil – Is This a Signal?
Dave Green • 1 min read
Over the past few days, the WTI crude oil has become incredibly unpredictable. Even today, the market opened with a huge gap in the early Asian trading session. Yesterday, the black gold closed at $48.160, but today it opened at $48.880 with a huge gap of 72 pips.
Honestly traders, I don't see any fundamental reason to justify this major gap in the crude oil. However, as we discussed in our previous update entitled, Hard Luck With The WTI Crude Oil, the agreements between the OPEC and non-OPEC producers to diminish production by roughly 1.8 million barrels/day to 32.5 million by mid 2017 seems to be underpinning the oil prices.
WTI Crude Oil – Technical Outlook
The mystery behind the gap is that they are meant to be filled either on the same day or on the very next trading day. Consequently, we can expect a pull back in the crude oil prices by the end of today or tomorrow. Nevertheless, the oil is staying below a major resistance level of $49.137 and $49.440.
Trade Signal: Based upon the fundamentals and technicals, I have already opened a sell position below a double top resistance level of $49.15, along with a stop loss above $49.45 with a take profit at $48.65.