Intraday Long: WTI Crude Oil Nears Key Fibonacci Level - Forex News by FX Leaders

Intraday Long: WTI Crude Oil Nears Key Fibonacci Level

Posted Thursday, August 10, 2017 by
Shain Vernier • 1 min read

Into The U.S. Session Close: September WTI Crude

After a brief test above $50.00, September WTI Crude Futures have returned to trade the value area of $49.50-$49.00. Depending on how the rest of the session shakes out, we may have a trade. Cost-effective trading is the key to long-term profitability.

Let's take a look at a possible entry point for later on:

Daily CL ChartSeptember WTI Crude Daily-Get Long At 38%

This an intraday counter trend play. Currently, WTI crude is trading below yesterday’s low at $48.90. We are seeing break out velocities to the bear on the 30-Minute and 60-Minute time frames.

Game Plan: Again, this an intraday counter trend play. Risk vs reward is crucial to the success of this type of trade. We are fighting heavy intraday selling. Modest 1:1 ratio here.

I am looking for a late day value area to set up between $48.50 and $49.00. Buy entry at the Fibonacci 38% of $48.51-60, with stop under $48.25. The goal is to hit a retracement back towards $49.00.

Intraday time frames are heavily bearish and this market is charged. Looking for exhaustion near $48.51 and a grind northward as we near the close.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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