WTI Crude Oil Update-Late Session Support Levels - Forex News by FX Leaders

WTI Crude Oil Update-Late Session Support Levels

Posted Monday, October 23, 2017 by
Shain Vernier • 1 min read

WTI crude oil has been trading sideways for the past five sessions. Rollover from the November to December futures contract has come and gone amid heavy volumes. At least for now, crude oil futures are in a holding pattern between $52.50 and $51.00.

Let’s dig into the technicals and identify the key support and resistance levels facing this market.

 

WTI Crude Oil Technical Outlook

By merely glancing at the daily chart for December WTI crude oil futures, one can see that whipsaw trading has been the rule for the last week or so.

WTI Crude OilDecember WTI Crude Oil Futures, Daily Chart

 

The key technical levels:

  • Support 1, 20 Day EMA: $51.37

  • Support 2, Daily SMA: $51.20

  • Support 3, Bollinger MP: $51.15

  • Resistance 1, Swing high: $52.65

  • Resistance 2, Sept. high: $53.11

Bottom Line: This market is messy right now. The daily ranges are formidable, around a 120 tick average. No direction is present, and $50.00 seems to be on the minds of everyone in this market. Unless today’s range opens up a bit, I will likely remain idle until tomorrow and the beginning of this week's inventory cycle.

For entertainment value, I will get some orders queued up near the Daily SMA for the rest of the day. Buys in December WTI crude from $51.20-$51.26 using a quick 1:1 R/R scalping strategy for 8-15 points is a solid play.

As always, trade smart and for tomorrow!  

 
Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of