October WTI Crude Is In With A Bang!

October WTI crude oil is rolling in with a bang! The last two hours have shown heavy participation and a bullish run of 167 ticks. Technicals be damned!

As I mentioned in an earlier update, rollover for WTI crude oil futures can be a very tricky time to trade. Today is a pretty good example of why many pros will not trade during rollover. But, it does give us a chance to study price action and look at a few key levels.

Technicals

For a quick reference, below is the October WTI crude oil daily chart:

Is October WTI crude going to test $50.00?

Today's crude market is trading with remarkable vigor, over 500,000 contracts. For a rollover day, that is a surprise. A few key numbers:

• 13 Day SMA at $48.71

• 62% retracement of current wave at $48.93

• Round numbers at $49.00, $49.50

• Important psyche level of $50.00

In this type of explosive bullish market, I do not recommend holding shorts and being long from a good location can be tough. In fact, I have my popcorn out and am just taking in the action. If you did rack up some ticks during the bullish break, kudos!

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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