WTI Crude Oil Plunges Beneath $52.00
Commodities are taking cues from U.S. stocks, showing more weakness as the session wears on. Both gold and oil are in the red, with March WTI crude plunging more than $1.50 to open the week. Sellers are taking an aggressive stance, sending values south ahead of Wednesday’s FED Policy Announcements. If the current bearish sentiment gains steam, it appears that WTI will revisit $50.00 sooner rather than later.
March WTI Crude Oil Futures: Technical Outlook
Friday was a tight session for March WTI, posting a modest 103 tick range. Price action was compressed, bringing choppy conditions to short term traders. Today is a different story ― WTI has opened the floodgates and broken out to the bear.
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Here are a few levels to watch at the session wears on:
- Support(1): Bollinger MP, $51.68
- Support(2): 38% Current Wave Retracement, $49.99
- Support(3): Daily SMA, $49.50
Bottom Line: For the time being, sellers are dominating the action in WTI crude. This isn’t a bad thing, as robust support is set up between $50.00 and $49.50. In the event price returns to this area, a long trade may be in the offing.
Until elected, I will have buy orders queued up from $50.06. With an initial stop loss at $49.74, this trade produces 25 ticks on a sub-1:1 risk vs reward management plan.
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