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