June/July Volume Dilution In WTI Crude - Forex News by FX Leaders
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June/July Volume Dilution In WTI Crude

Posted Thursday, May 16, 2019 by
Shain Vernier • 1 min read

June WTI crude oil futures have broken out to the bull and gained traction above $63.00. Bidders have entered the market en masse, going long ahead of the pending July rollover. At this point, the volume split is 2/1 in favor of June, but energy traders will likely make July the new front-month WTI contract on Friday.

June WTI Crude Oil Futures Have Broken Above Fibonacci Resistance

For the better part of three weeks, June WTI crude oil futures have rotated between $60.00 and $63.00. This morning has brought a break from this area, north of the daily 38% Fibonacci Retracement ($62.55) and Bollinger MP ($62.40).

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

Here are the levels to watch for the rest of today’s session:

  • Resistance(1): Daily SMA, $63.91
  • Support(1): 38% Current Wave Retracement, $62.55

Bottom Line: The bullish breakout in WTI has been a long time coming. In the event it reaches the Daily SMA ($63.91) an active short from this area is a solid way to fade the intraday trend. For the rest of the day, sells from $63.89 with an initial stop at $64.11 will likely produce a fast 10-15 ticks profit.

Remember that the July WTI futures contract is very likely to be the new front-month for Friday’s session. At press time (12:00 PM EST), July WTI is trading at a slight premium over June. Look for this spread to come in as the Thursday session progresses and Friday gets underway.

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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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