Rotation Is The Rule: Trading WTI Crude Oil Futures For Sept. 22, 2017

Compression is the rule facing WTI crude oil futures. As previously addressed, trade is consolidating between $51.00 and $50.00. The big question is, when do we move and where?!

The key to addressing any market is the proper strategy. No matter the conditions, an opportunity exists. Now it is time to capitalize!

Technicals

November WTI crude oil has seen a tight Friday morning open. With a daily range of 49 ticks, price extension is all but assured.

November WTI Crude Oil, Daily Chart

A few technicals:

• 38% Fibonacci retracement remains intact at $49.77

• Swing high of $51.11 is this week’s high water mark

• Compression zone of $50.00-$51.00 is daily value

• The $50.00 psyche level is a monster!! Respect it!

Bottom Line: This market is stuck in rotation. Without an outside stimulus, (as was Wednesday’s FED announcements) we are not likely to deviate from the psych level of $50.00.

Practicing a scalping methodology, shorts from $50.95-$50.99 with a stop above the swing high of $50.11 is a solid plan moving into the middle of the U.S. session. 1:1 R/R is a good guideline for what seems to be a lazy Friday.

As always, trade smart and for 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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