Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
Trading positions
- WTI Crude Oil [CLF22] Long around $75.25-76.22 support (yellow band) with targets at $79.37 / $82.24 and stop just below $73.43 (previous swing low) – See the chart
- Natural Gas [NGZ21] No position currently justified from the risk-to-reward point of view.
By the way, have you read my last article about commodity currencies? Let me know if you have any questions regarding that hybrid (commodities/FX) topic, and I will do my best to emphasize some of your suggestions in my future analyses!
Trade plan explained
Since the market is currently facing further downward pressure, induced in part by a stronger US dollar, I anticipate a lower dip that could take place onto the $75.25-76.22 yellow band. The recommended objective would be on $79.37 and 82.24 levels. My recommended stop would be located on the $74.42 level (below the previous swing low from 7-October, as well as below the previous high-volume node and volume point of control [VPOC] from September). Alternatively, you can also use an Average True Range (ATR) ratio to determine a different stop level that may better suit you.
WTI Crude Oil (CLF22) Futures (January contract, daily chart)
That’s all folks for today. Happy trading!
As always, we’ll keep you, our subscribers, well-informed.
Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
