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

Posted Tuesday, August 15, 2017 by
Shain Vernier • 1 min read

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.


60 Minute Crude Oil ChartSeptember 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.

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