Mid-U.S. Session Brief: WTI Crude Oil Enters Correction

Posted Monday, October 2, 2017 by
Shain Vernier • 1 min read

WTI crude oil futures have entered corrective territory today, under heavy selling. Monday’s session has brought extreme pressure from bears, as November WTI crude oil futures have posted a proximity test of $50.00.

$50.00 seems to be a magnet for this market. Big round numbers can be important when identifying market sentiment, often acting as catalysts bolstering participation.



The technical roadmap for November WTI crude oil futures is fairly straightforward on the daily timeframe.

CL Daily ChartNovember WTI Crude Oil Futures, Daily Chart

Currently, November crude is oscillating in the neighborhood of $50.50 on just over 450,000 contracts traded. As the U.S. session close nears, there are a few key support levels to be aware of:

  • 20 Day EMA at $50.44

  • Bollinger Band MP at $50.16

  • Psychological barrier of $50.00

  • Daily SMA at $49.37

Today’s close will be an integral part of strategizing for the rest of the week. Last Friday’s tight range of 52 ticks set up the bearish breakout today. If the intraday low of $50.07 holds, we may be looking at prolonged sideways trading between $50.00 and $52.86.

Bottom Line: Kudos to all who made a few bucks on today’s sell-off. The break beneath Friday’s low was a great entry, very similar to the trading plan I outlined on Friday. Unfortunately for this trader, the timing of the break was during the overnight.

Missed opportunities can be frustrating, but this market is set up nicely for the rest of the week. Patience is a virtue, and moving into tomorrow’s U.S. session we should be able to identify multiple setups. 

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