Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.
- WTI Crude Oil [CLM22] Long around the $100.28-101.99 support area (yellow band) with stop just below $96.52 and targets at 107.76, 110.74 & 113.07.
Oil prices fell on Monday during the European session. They were weighed down by fears of a slowdown in Chinese demand due to the epidemic outbreak the country is currently experiencing.
Given the past week's breakout through the higher side of the triangle with a market rally sufficient to go beyond the previous swing high at $109.20, I expect the current correction to revert by the middle point (median) of the past range. Optimally, a rebound could happen on the next lower support where I would see bulls getting back in, placing long orders to trigger the next bounce up around the $100.28-101.99 area. A stop will be placed well under the lower side of the triangle, so just below $96.52.
WTI Crude Oil (CLM22) Futures (June contract, daily chart)
WTI Crude Oil (CLM22) Futures (June contract, 4H 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
