Breakout! Will North-Bound WTI Crude Challenge Yearly Highs? - Forex News by FX Leaders

Breakout! Will North-Bound WTI Crude Challenge Yearly Highs?

Posted Monday, September 25, 2017 by
Shain Vernier • 2 min read

Today’s session has finally brought a directional move to the WTI crude oil market. After Friday’s heavy rotation, we have seen a definitive break towards the bull. Now, the million dollar question is how high is November WTI crude futures poised to go?

Trading an explosive market using intraday timeframes can be a challenge. Often, the best entries are already long gone with only risky trade locations left. However, as we move towards the U.S. session close, there are a few long-term resistance levels that may offer some value.

Rally, Rally, Rally!

When it comes to trading the early bird typically gets the worm. If you are a U.S. session trader, be sure to check out my colleague Arslan’s regular crude oil synopsis released during the overnight. It is a good place to start your daily analysis of the global oil markets.

Crude Oil Daily ChartNovember WTI Crude Oil Futures, Daily Chart. Not A Whole Lot Of Resistance On The Horizon!

Last Friday, I outlined the compression zone facing WTI crude and some of the challenges facing this market’s upside potential. As of now, those challenges are long gone!

A few observations moving forward:

  • Today’s volume facing November WTI futures has been robust, closing in on 500,000 contracts.

  • It looks as though the big round $50.00 level may be a thing of the past.

  • Back in January, WTI crude traded heavily in the $55.00-$57.00 range. It looks as though we are set to visit this level once again.

Overview: Amid the heavy bullish participation, there are not a whole lot of topside resistance levels to hang our hats on. I am always a fan of big round numbers, but to physically sell into the teeth of such a dominant trend is a difficult way to make money.

In my opinion, we are headed to the $55.00-$57.00 level for the intermediate term. Upon today’s close, there will be defined levels to adopt a true day-trading strategy moving forward.

In the meantime, check out the trading signals and strategies for playing trending markets here at FX Leaders.

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About the author

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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