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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.    






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