WTI Crude Late Session Brief: It’s A Tight One…..

Today has seen September WTI crude oil futures trade with a tight range of 75 ticks. As mentioned earlier in the electronic session, the Fibonacci retracement of 62% on the daily is in and now serves as a key area of support.

Don't be lulled to sleep.There are a few critical aspects of the WTI futures market to stay aware of in the coming hours.

Sleepy U.S. Session

The U.S. session for WTI crude oil futures has been a lackluster affair posting a meager 32 tick range. This will undoubtedly change with the API crude oil stocks release today.

September WTI Crude Oil Futures-1 Hour Chart

On an intraday time frame, WTI crude oil is tight. It can be challenging to trade a market stuck in heavy intraday rotation. Often, it is better to wait for a breakout and react accordingly. The beauty of crude oil is that anything can happen. Its ability to go on a massive run out of nowhere is legendary. 

A quick look at the intraday technicals:

• 38% of yesterday’s range is 47.84

• Today’s low of 47.02 is immediate support at a round number

• If the tight range holds, the closing levels will be potential breakout points for tomorrow's trade

Bottom Line: The volume split between the September and October contract is tightening. As of now, we are looking at a 1.5/1 ratio, signaling that traders are beginning to focus on the October contract. As volume dilutes, we are likely to see even more rotation.

I will be looking to scalp a washout of intraday longs under 47.00 with an extremely tight profit target and stop loss. Other than that trade, it is better to hold on to a longer-term view or wait and attack tomorrow.

ABOUT THE AUTHOR See More

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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