Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Futures Trade Desk- Crude Oil Technical Review

Client Note

Crude Oil Technical Review

Trend: Long Momentum: Mixed Sentiment: Mixed Daily Trading Range: Extreme $3.50 (4.4%) 

Daily Simple Moving Average Lines: Blue (20 SMA) Green (50 SMA) Orange (100 SMA) Red (200 SMA)

Crude oil 4-Hour Chart

Crude oil 4-Hour Chart 

Technical Wave: The first leg of an ABC Up structure formed with the move from 74.50 to 86.50, the B-leg reversed to 83.00 and held support, which set up the C-leg that targeted 104.00. Now is the time to look for consolidation after the recent test of support before a move through 102.50 could easily hold. The 94.50 area is a main swing point of note.

Buy Support: Bullish traders will be looking to potentially buy the short reversals to 96.80 (the 23% Fibonacci area of the move higher from 74.50 to 103.50), which could then target 94.50. 

Sell Resistance: Bearish traders will be looking to potentially sell long tests of resistance around 102.50 (the recent swing point high), which could then target 98.50. 

Overall: Oil trade has become strongly correlated to moves on the S&P 500, which has created volatile intra-day WTI trading conditions.  

This Week: Selling of resistance could be seen if equity markets show any weakness. News-headline related moves are dominating any and all technical potential. The outlook is mixed, with the path of least resistance likely to be consolidation. The intra-day trading range is extreme and signals massive volatility remains a constant threat.    

Information, analysis and methodologies provided are for informational purposes only, obtained from sources believed to be reliable, and should not be used as a replacement for research by an individual investor or licensed investment professional. In no event should the content of this correspondence be construed as an express or implied promise, guarantee, or implication that profits or losses can be made or limited in any manner whatsoever. No guarantee of any kind is implied or possible where projections of future conditions are attempted.