Trade Desk Client Note
Global Futures Market Review
WTI Oil Technical Outlook
Trend: Mixed Momentum: Weak Sentiment: Weak Average Daily Trading Range: $3.50 (4.4%)
Daily Simple Moving Average Lines: Blue (20 SMA) Green (50 SMA) Orange (100 SMA) Red (200 SMA)
WTI Oil 4-Hour Chart
Technical Wave: Three wave ABC Down structure has completed. A break below 76.50 could create a short five-wave play that targets 72.50
Buy Support: Bullish traders will be looking to buy the short reversals to 79.90, which then target 82.00 and 84.50
Sell Resistance: Bearish traders will be looking to sell long tests of resistance between 85.40, which then target 81.50 and 79.70
Overall: Oil trade has become strongly correlated to moves on the S&P 500, which is creating volatile intra-day oil trading conditions
This Week: The pattern of selling resistance is likely to continue if equity markets continue to show weakness. Traders need to accept that news-headline related moves are dominating technical potential. The trend and outlook is mixed, with the path of least resistance likely to continue to be lower. The intra-day trading range is extreme and signals massive volatility is a constant threat.