WTI Crude Oil Futures: Leaving Compression?

Posted Friday, August 4, 2017 by
Dave Green • 1 min read

Today has been a wild ride for currencies and gold. The U.S. economic data came in better than expected, sending a shockwave through the markets.

As we move further into this session, opportunity will be afoot. Stay cognizant of the volatility and watch your money management.


Trade: WTI Crude Oil Futures

September WTI Crude oil futures are presenting a potential short opportunity. This week crude has traded with compression between a swing high of over $50.00 and the 38% retracement of the current wave of $48.51.


CL DailyWTI Crude Oil Futures-Daily Chart

We have seen crude test the 48.50 area several times this week, each time staying above this key level. Huge traded volumes have brought tremendous action to this market.

The bull/bear debate is nearing its conclusion. Crude is poised to leave the compression zone either today or in the coming sessions. It is our job to identify the most efficient way to profit from this market.

Bottom Line: Sell September WTI crude under $48.50 and look for pressure until we hit the 50% retracement of the current daily wave, $47.92. If we rotate upwards towards $50.00 today, then no harm no foul. Next week will bring more opportunities.

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