Planning for the Next Trade in Crude OilNYMEX:CL1!
Key Levels – Higher Timeframe:
• 2025 High: 78.56
• Yearly Open (2025): 69.64
• 2025 mCVPOC: 71.83
• Yearly VWAP: 68.41
• AVWAP from Yearly Highs: 67.71
• 2025 mCVAL: 65.28
• March 2025 Low: 64.37
• 2024 Low: 59.91
April 2025 Key Levels:
• April mCVAL: 58.79
• April mCVPOC: 60.94
• April AVWAP from Lows: 61.29
• April AVWAP from Highs: 61.76
• April mCVAH: 63.73
Our previous trade idea played out as expected. With updated levels now in place, we aim to reassess the market context without falling into recency or confirmation bias. These biases often lead to an overly bearish outlook at market lows, especially amid ongoing headlines around trade war tensions and supply concerns. While such fundamentals are important, maintaining objectivity is key.
This leads us to the central question: Is all this bearish sentiment already priced in? If so, why are sellers still dominant?
From a broader perspective, the overall context for crude remains bearish. However, this does not imply an immediate continuation to lower prices.
Currently, price is trading below both the midpoint of 2025 and that of 2024. Additionally, the recent price swing failed at the March 2025 low—an important technical rejection. The 2024 low at 59.91 now serves as key structural support. We anticipate further consolidation within the April 2025 value range, specifically between mCVAH (63.73) and mCVAL (58.79).
We define the area between April’s mCVPOC (60.94) and AVWAPs (61.29 / 61.76) as a "noise zone"—a region where price action is likely to be choppy and directionless. This zone is not favorable for directional trades.
Potential Trade Setup – Range-Bound Play
Example Trade 1: Long Crude Oil
• Entry: 59.91
• Stop: 59.20
• Target: 61.76
• Risk: 71 ticks
• Reward: 185 ticks
• Risk/Reward Ratio: 2.6R
Example Trade 2: Long Crude Oil
• Entry: 58.80
• Stop: 58.20
• Target: 61.76
• Risk: 60 ticks
• Reward: 296 ticks
• Risk/Reward Ratio: 4.93 R
Important Notes:
• These are example trade ideas and not financial advice or recommendations.
• Traders should conduct independent analysis and ensure proper risk management.
• Stop-loss orders are not guaranteed; slippage may occur, resulting in losses beyond predefined levels.
• AVWAP levels are accurate at the time of posting, they may vary as indicator further calculates prices with new volume and price information.
Glossary Index for all technical terms used:
ATH: All time high
VPOC: Volume Point of Control
VAL: Value Area Low
VAH: Value Area High
VP: Volume Profile
AVP: Anchored Volume Profile
C: Composite (prefix before VAL, VAH, VPOC, VP, AVP)
mC: micro-Composite (prefix before VAL, VAH, VPOC, VP, AVP)
AVWAP: Anchored Volume Weighted Average Price
Green Zones: Bull/ Buyers support zones
Red Zones: Bear/Seller resistance zones
