April WTI Crude Falls, $56.00 In View - Forex News by FX Leaders
wti crude oil

March 1st hasn’t disappointed, as there is action all over the markets. One of the most volatile instruments right now is April WTI crude oil futures. Volumes are heavy, with more than 400,000 contracts having already changed hands in the April contract alone. Subsequently, bearish sentiment has ruled the day and prices have fallen from highs near $58.00 per barrel earlier in the session.

The buzz among energy traders today has been optimism regarding an “imminent” U.S./China trade deal. Based upon this fundamental, WTI pricing is due to rise as a result of increased Chinese demand. While this may eventually be the case, longs are currently being crushed with prices in April crude oil futures falling more than $1.00 at press time (11:15 AM EST).

April WTI Crude Oil Futures: Technical Outlook

The roadmap for April WTI crude oil futures is fairly straightforward: the intraday trend is down and daily support levels are coming into view!

April WTI Crude Oil Futures (CL), Daily Chart
April WTI Crude Oil Futures (CL), Daily Chart

Bottom Line: In the event that the intraday bearish trend continues, a long from above $55.00 will come into play. For the rest of the session, I will have buy orders queued up from $55.26. With an initial stop at $54.99, this trade produces 25 ticks on a sub-1:1 risk vs reward management plan.

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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.
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