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 $65.70-66.21 support (yellow band) with targets at $71.07 / 74.25 / 77.23 and stop just below $ 63.02 – Entry triggered!
- Natural Gas [NGZ21] No position currently justified on a risk-to-reward point of view.
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Trade plan explained
The dip took place as the market bottomed at 64.43 (facing rejection from the bulls towards the $66 mark), thus triggering the suggested entry around the $65.70-66.21 yellow band. The first recommended target, projected at $71.07 has been more than half-filled up so far. My recommended stop was placed just below the $63.02 level (below July’s swing low).
WTI Crude Oil (CLF22) Futures (January contract, daily chart)
To better visualise the price action that has occurred, just zoom into a 4-hour chart:
WTI Crude Oil (CLF22) Futures (January contract, 4H chart)
As you can see, the level provided was optimum given its support function to act as a floor for rebounding prices.
That’s all for today, folks. Happy trading!
As always, we’ll keep you, our subscribers well informed.
Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
