WTI crude oil futures have posted heavy volumes once again, down just above a quarter for the session. With this week’s inventory cycle beginning towards the end of the day, we are in line to see even more players coming to the table.

Earlier in the session, a winning USOIL signal hit the tote board. Kudos to all who took some money out of the market following its advice. Be sure to check in with my colleague Arslan during the U.S. overnight for analysis facing this week’s API and EIA inventory reports.

WTI Crude Oil Futures

January WTI crude has been active, trading over 400,000 contracts for the session. Price has been confined to a 69 tick range, but that is sure to change as the inventory data comes across the wires.

January WTI Crude Oil Futures, Daily Chart

WTI crude has turned in a proximity test of the 38% retracement much earlier in the session. With an established intraday low of $57.42, buyers were certainly waiting in the weeds to reject the selloff beneath Monday’s low.

Here are the key levels for the remainder of the U.S. session:

• Support(1): 38% retracement of current wave, $57.50

• Support(2): 62% retracement of current wave, $56.65

• Support(3): 20 Day EMA, $56.59

• Resistance(1): Swing High, $59.05

• Resistance(2): Key psyche level, $60.00

Overview

By far, WTI crude oil futures is one of my favorite markets. With such high levels of participation and volatility, it is a premier venue for short-term trading.

Today’s action is a bit compressed, seemingly waiting for the API and EIA numbers before making a directional move. Upon their release, we are likely to see another run at $60.00 or a selloff towards our support levels later in the week. For now, I am in a wait and see mode until today’s close.

If you are active, best of luck and keep an eye on your risk ahead of inventories!