CL Trade Idea: Key Levels & Strategies Amid Volatility
CL1! With Trade War 2.0 unfolding, managing risk in futures trading is more crucial than ever. One way to mitigate risk is by utilizing micro CME contracts, allowing for more precise risk management during volatile market conditions. Additionally, you can participate in the CME and TradingView paper trading competition, giving you the opportunity to test your skills in The Leap without risking real money.
Crude Oil Futures:
It’s the start of a new month. We saw our last week’s idea “scenario 1” partially play out before prices pulled back higher towards our neutral LIS.
As mentioned above, it is our opinion that current situations and macro news may result in heightened volatility, so it is important to trade what you see and not what you think.
Do not get fixated on your view on the market. Be ready to shift and adapt as the markets evolve on the hard right edge.
Instead of recapping and presenting a macro update today, we will shift our focus on the charts. Looking purely at price, time, volume, and key levels to create a plan for the week.
Key Levels to Watch
Key levels represent areas of interest and zones of active market participation. The more significant a key level, the closer we monitor it for potential reactions and trade setups in alignment with our trading plan.
Micro Composite Value Area High (mCVAH) January 2025: 76.00
January 2025 mid- range: 74.96
February Monthly Open: 74.14
Micro Composite Value Area Low (mCVAL) January 2025: 71.82
Yearly Open: 70.52
2024 Mid- Range: 70.40
Scenario 1: Rejection confirmation at January 2025 Mid
Price has attempted to push above January 2025 mid and was rejected. This was a key level of interest to validate longs in our last week’s trade plan. Rejection of this level and price now below monthly open. There is room for prices to shift lower towards mcVAL Jan 2025 and test of key bull support at yearly open and 2024 mid range.
Scenario 2: mcVAL 2025 to act as intermediate support
If we see this level hold, in our opinion, Crude oil may be establishing a new range capped within mcVAH and mcVAL Jan 2025 until we see a break of either side. That said, intra day volatility may increase with headline news impacting prices.
As always it is paramount to manage your risk as losses are an inherent part of trading.
What are you focusing on amid all the headline news? We'd love to hear your thoughts!
EdgeClear
P: 773.832.8320 | TF: 844-TRADE20
Derivatives trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The views expressed are opinions, not financial advice.
P: 773.832.8320 | TF: 844-TRADE20
Derivatives trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The views expressed are opinions, not financial advice.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
EdgeClear
P: 773.832.8320 | TF: 844-TRADE20
Derivatives trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The views expressed are opinions, not financial advice.
P: 773.832.8320 | TF: 844-TRADE20
Derivatives trading involves a substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. The views expressed are opinions, not financial advice.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.