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