Potential Long oversold and lowest price range previously, with a high potential to jump back to the previous high with the lowest risk.
WTI1! trade ideas
CRUDE BREAKOUT - MCX - JUNE 24Technical Pattern Analysis
Pattern: Potential Bullish Breakout from trendline
Timeframe: 1 Hour
Analysis:
Crude oil is showing signs of a potential bullish breakout. A sustained move above 6500 level could signal a bullish trend, with initial targets at 6600-6700. Positive sentiment is supported by a decline in crude inventories and supply disruptions due to wildfires in Canada.
Note: This is a short-term analysis based on the given information. It's essential to consider broader market conditions, fundamental factors, and other technical indicators for a comprehensive outlook.
Potential Trading Strategy:
Buy: Above 6500 with a stop-loss below 6490.
Target: 6600-6700
IF YOU LIKE MY ANALYSIS DO LET ME KNOW :)
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Trading involves risk.
Oil (CL) Turning Lower in Elliott Wave Impulsive StructureShort Term Elliott Wave View in Oil (CL) suggests that cycle from 4.12.2024 high is in progress as a 5 waves impulse Elliott Wave structure. Down from 4.12.2024 high, wave (1) ended at 72.48 and rally in wave (2) ended at 84.55. The commodity has turned lower in wave (3) with internal subdivision as another impulse in lesser degree. Down from wave (2), wave (i) ended at 83.07 and rally in wave (ii) ended at 83.45. Oil then extended lower in wave (iii) towards 81.25 and wave (iv) ended at 82.16. Final leg wave (v) ended at 80.81 which completed wave ((i)) in higher degree. Wave ((ii)) unfolded in an expanded flat structure where wave (a) ended at 83.74. Wave (b) lower ended at 80.22, and rally in wave (c) ended at 83.82 which completed wave ((ii)).
Oil has turned lower in wave ((iii)). Down from wave ((ii)), wave (i) ended at 82.04 and rally in wave (ii) ended at 83.52. It then resumed lower in wave (iii) towards 76.40 and rally in wave (iv) ended at 77.51. Expect further downside to complete wave (v) of ((iii)), then it should rally in wave ((iv)) before it resumes lower again. Near term, as far as pivot at 84.55 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside.
Monday evening Pondering - Crude OilSo as I stated in my last post, we would have a short range day as per previous large ranged day.
We did attack the SSL as target 1 however Im looking at price heading higher to the BSL and 1hr FVG before we head down...
Lets see what Asia and early London does..
Will update nearer to NY for Turbo Tuesday...
Oil Price on Track to Test Monthly LowThe price of oil appears to be on track to test the monthly low ($80.81) as it continues to pull back from last week’s high ($83.74).
Crude Oil Price Outlook
The recent rally in the price of oil seems to have stalled ahead of the April high ($87.67) as the Relative Strength Index (RSI) reverses ahead of overbought territory, with a breach below $80.70 (38.2% Fibonacci retracement) raising the scope for a move towards the $78.50 (50% Fibonacci retracement) to $79.00 (50% Fibonacci retracement) region.
Next area of interest comes in around $76.30 (61.8% Fibonacci retracement) but the price of oil may face range bound conditions should it track the flattening slope in the 50-Day SMA ($79.40).
Failure to test the monthly low ($80.81) may push the price oil back towards $83.30 (23.6% Fibonacci retracement), with the next region of interest coming in around the monthly high ($84.52).
--- Written by David Song, Strategist at FOREX.com
Crude Oil hit Major Resistance, 10% Down until early AugustIn my latest analysis of the Crude Oil Futures ( NYMEX:CL1! ) market, I've identified key medium-term resistance and support levels. The resistance at $84.30 was ideal for a short position, with a trailing-stop set at $83.80 to manage risk. My target for this short position is $74.50, suggesting a significant profit potential of over 10%. Considering that most significant downtrends in oil take about 20 days, I expect the price to reach $74.50 around the end of July or early August.
I also noticed consolidation zones between $82.00 and $77.00, which may cause temporary price consolidation. The medium-term support at $74.50 is crucial for considering a long position, indicating a possible upward reversal.
My strategy is to short at $84.30 (already done) with a stop-loss at $83.80 (to minimize losses) and aim for a profit at $74.50, while closely monitoring the consolidation zones for any signs of price stalling or reversal. If all goes according my plan, I also might consider a long position at around $74.
What is your take on OIL for the next month?
Crude oil retesting lower supportOn Friday morning the oil price looked finely balanced. Front-month WTI had managed to hold support around $80. But it had failed to put sufficient clear water between this level and its first major upside target of $82 per barrel. That proved to be fatal for traders looking for an immediate resumption of the bull run from early June. Crude fell back sharply on Friday afternoon, breaking support cleanly. It is weaker again this morning. This is despite the unexpected rate cut from China, together with the country’s fresh plans for reviving its economy, formally announced over the weekend. The next significant support area stretches down to $77.70 or thereabouts. If this fails to hold then a retest of the June lows around $73 increases in likelihood. That’s good news for consumers of course, and, should it then consolidate down here for a month or so, would help put more downside pressure on headline inflation. But that’s getting carried away with an imaginary narrative. For now, the daily MACD suggests that there’s a touch more downside momentum, and a retest of an area of support which held in May and June is now in progress.
Crude Oil BIAS - Monday So Friday Crude showed its hand to us and what it was really wanting to do.
Sell side hit and with that a large Daily Displacement.
We could expect a smaller range day today and with that said I am looking for short term BSL to be taken before to carry on to the sell side of the chart.
I have two targets marked out clearly for this weeks initial draw on liquidity and the BIAS.
Crude**CrudeOil:**
This week's forecast is for the price to fall to the bottom of the channel and then reverse the trend.
Crude Oil May Face ResistanceCrude oil futures rallied in June, but some traders may see downside risk.
The first pattern on today’s chart is the falling trendline along the peaks of September, April and early July. These lower quarterly highs may be viewed as resistance.
Second is the level around 80.65. CL1! stalled there in early March and bounced at the same area in late March. It was a top again in late May that became support a month later. Prices have tested it this week. Is a breakdown possible?
Third, MACD has turned negative, which anticipated drops in October and late April. (See the arrows on the lower study.)
Fourth, the 21-day exponential moving average is starting to turn negative. Like MACD, this event also preceded downturns.
Finally, there could be catalysts with OPEC+ holding a ministerial meeting on August 1.
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Several markets oil might be a short trade with a 2 point tar 7.18.24 this video spent some time looking at the dollar versus the gold and silver which are bullish. all 3 of those markets are positive for the day which can be confusing. there are a lot of people who think that the overall markets going to take a beating.... and I agree with that, but I believe the markets will give us plenty of time to make a good trade decision... and for the es and the Russell I think the trade decision will be through the range boxes
Crude passes first test of supportCrude oil flew higher yesterday, after spending the morning testing significant support. Front-month WTI dropped below $80 per barrel on Tuesday, setting the market up for a face-off between the bulls and bears. It proved to be quite a tussle, with the winner likely to set the tone and near-term direction. In the end, the bulls managed to spark a significant rally once prices broke back above $80. Upside momentum continued to build, and then news of a larger-than-expected US inventory drawdown bolstered the push higher. Prices pulled back a touch this morning, but overall the move looks constructive. This positive reaction to a serious test of support has increased the probability of more gains to come. But traders should be on their toes should prices turn down again, as there’s no guarantee that there won’t be another retest of $80. While the economic outlook for China remains uncertain, the US economy continues to motor along, even if in a lower gear from earlier in the year. But the prospect of three 25 basis point rate cuts from the Federal Reserve before year-end is also helping to boost positive sentiment.
Thursday Crude Oil ForecastYesterday we saw a nice rally creating a Daily +OB which I have annotated.
If price is to respect the 4hr FVG we will see price go higher to the marked target.
I am bullish today however to expect some form of retracement after such a move is understandable for the market to make.
Bullish is the motive.
Exploring Bearish Plays w/ Futures, Micros & Options on FutureIntroduction
The WTI Crude Oil futures market provides various avenues for traders to profit from bullish and bearish market conditions. This article delves into several bearish strategies using standard WTI Crude Oil futures, Micro WTI Crude Oil futures contracts, and options on these futures. Whether you are looking to trade outright futures contracts, construct complex spreads, or utilize options strategies, this publication aims to assist you in formulating effective bearish plays while managing risk efficiently.
Choosing the Right Contract Size
When considering a bearish play on WTI Crude Oil futures, the first decision involves selecting the appropriate contract size. The standard WTI Crude Oil futures and Micro WTI Crude Oil futures contracts offer different levels of exposure and risk.
WTI Crude Oil Futures:
Standardized contracts linked to WTI Crude Oil with a point value = $1,000 per point.
Suitable for traders seeking significant exposure to market movements.
Greater potential for profits but also higher risk due to larger contract size.
TradingView ticker symbol is CL1!
Margin Requirements: As of the current date, the margin requirement for WTI Crude Oil futures is approximately $6,000 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions.
Micro WTI Crude Oil Futures:
Contracts representing one-tenth the value of the standard WTI Crude Oil futures.
Each point move in the Micro WTI Crude Oil futures equals $100.
Ideal for traders who prefer lower exposure and risk.
Allows for more precise risk management and position sizing.
TradingView ticker symbol is MCL1!
Margin Requirements: As of the current date, the margin requirement for Micro WTI Crude Oil futures is approximately $600 per contract. Margin requirements are subject to change and may vary based on the broker and market conditions.
Choosing between standard WTI Crude Oil and Micro WTI Crude Oil futures depends on your risk tolerance, account size, and trading strategy. Smaller contracts like the Micro WTI Crude Oil futures offer flexibility, particularly for newer traders or those with smaller accounts.
Bearish Futures Strategies
Outright Futures Contracts:
Selling WTI Crude Oil futures outright is a straightforward way to express a bearish view on the market. This strategy involves selling a futures contract in anticipation of a decline in oil prices.
Benefits:
Direct exposure to market movements.
Simple execution and understanding.
Ability to leverage positions due to margin requirements.
Risks:
Potential for significant losses if the market moves against your position.
Mark-to-market losses can trigger margin calls.
Example Trade:
Sell one WTI Crude Oil futures contract at 81.00.
Target price: 76.00.
Stop-loss price: 82.50.
This trade aims to profit from a 5.00-point decline in oil prices, with a risk of a 1.50-point rise.
Futures Spreads:
1. Calendar Spreads: A calendar spread, also known as a time spread, involves selling (or buying) a longer-term futures contract and buying (or selling) a shorter-term futures contract with the same underlying asset. This strategy profits from the difference in price movements between the two contracts.
Benefits:
Reduced risk compared to outright futures positions.
Potential to profit from changes in the futures curve.
Risks:
Limited profit potential compared to outright positions.
Changes in contango or backwardation could hurt the position.
Example Trade:
Sell an October WTI Crude Oil futures contract.
Buy a September WTI Crude Oil futures contract.
Target spread: Decrease in the difference between the two contract prices.
In this example, the trader expects the October contract to lose more value relative to the September contract over time. The profit is made if the spread between the December and September contracts widens.
2. Butterfly Spreads: A butterfly spread involves a combination of long and short futures positions at different expiration dates. This strategy profits from minimal price movement around a central expiration date. It is constructed by selling (or buying) a futures contract, buying (or selling) two futures contracts at a nearer expiration date, and selling (or buying) another futures contract at an even nearer expiration date.
Benefits:
Reduced risk compared to outright futures positions.
Profits from stable prices around the middle expiration date.
Risks:
Limited profit potential compared to other spread strategies or outright positions.
Changes in contango or backwardation could hurt the position.
Example Trade:
Sell one November WTI Crude Oil futures contract.
Buy two October WTI Crude Oil futures contracts.
Sell one September WTI Crude Oil futures contract.
In this example, the trader expects WTI Crude Oil prices to remain relatively stable.
Bearish Options Strategies
1. Long Puts: Buying put options on WTI Crude Oil futures is a classic bearish strategy. It allows traders to benefit from downward price movements while limiting potential losses to the premium paid for the options.
Benefits:
Limited risk to the premium paid.
Potential for significant profit if the underlying futures contract price falls.
Leverage, allowing control of a large position with a relatively small investment.
Risks:
Potential loss of the entire premium if the market does not move as expected.
Time decay, where the value of the option decreases as the expiration date approaches.
Example Trade:
Buy one put option on WTI Crude Oil futures with a strike price of 81.00, expiring in 30 days.
Target price: 76.00.
Stop-loss: Premium paid (e.g., 2.75 points x $1,000 per contract).
If the WTI Crude Oil futures price drops below 81.00, the put option gains value, and the trader can sell it for a profit. If the price stays above 78.25, the trader loses only the premium paid.
2. Synthetic Short: Creating a synthetic short involves buying a put option and selling a call option at the same strike price and expiration. This strategy mimics holding a short position in the underlying futures contract.
Benefits:
Similar profit potential to shorting the futures contract.
Flexibility in managing risk and adjusting positions.
Risks:
Potential for unlimited losses if the market moves significantly against the position.
Requires margin to sell the call option.
Example Trade:
Buy one put option on WTI Crude Oil futures at 81.00, expiring in 30 days.
Sell one call option on WTI Crude Oil futures at 81.00, expiring in 30 days.
Target price: 76.00.
The profit and loss (PnL) profile of the synthetic short position would be the same as holding a short position in the underlying futures contract. If the price falls, the position gains value dollar-for-dollar with the underlying futures contract. If the price rises, the position loses value in the same manner.
3. Bearish Options Spreads: Options offer versatility and adaptability, allowing traders to design various bearish spread strategies. These strategies can be customized to specific market conditions, risk tolerances, and trading goals. Popular bearish options spreads include:
Vertical Put Spreads
Bear Put Spreads
Put Debit Spreads
Ratio Put Spreads
Diagonal Put Spreads
Calendar Put Spreads
Bearish Butterfly Spreads
Bearish Condor Spreads
Etc.
Example Trade:
Bear Put Spread: Buying the 81.00 put and selling the 75.00 put with 30 days to expiration.
Risk Profile Graph:
This example shows a bear put spread aiming to profit from a decline in WTI Crude Oil prices while limiting potential losses.
For detailed explanations and examples of these and other bearish options spread strategies, please refer to our published ideas under the "Options Blueprint Series." These resources provide in-depth analysis and step-by-step guidance.
Trading Plan
A well-defined trading plan is crucial for successfully executing any strategy. Here’s a step-by-step guide to formulating your plan:
1. Select the Strategy: Choose between outright futures contracts, calendar or butterfly spreads, or options strategies based on your market outlook and risk tolerance.
2. Determine Entry and Exit Points:
Entry price: Define the price level at which you will enter the trade (e.g., breakout, UFO resistance, indicators convergence/divergence, etc.).
Target price: Set a realistic target based on technical analysis or market projections.
Stop-loss price: Establish a stop-loss level to manage risk and limit potential losses.
3. Position Sizing: Calculate the appropriate position size based on your account size and risk tolerance. Ensure that the position aligns with your overall portfolio strategy.
4. Risk Management: Implement risk management techniques such as using stop-loss orders, hedging, and diversifying positions to protect your capital. Risk management is vital in trading to protect your capital and ensure long-term success.
Conclusion
In this article, we've explored various bearish strategies using WTI Crude Oil futures, Micro WTI Crude Oil futures, and options on futures. From outright futures contracts to sophisticated spreads and options strategies, traders have multiple tools to capitalize on bearish market conditions while managing their risk effectively.
When charting futures, the data provided could be delayed. Traders working with the ticker symbols discussed in this idea may prefer to use CME Group real-time data plan on TradingView: www.tradingview.com This consideration is particularly important for shorter-term traders, whereas it may be less critical for those focused on longer-term trading strategies.
General Disclaimer:
The trade ideas presented herein are solely for illustrative purposes forming a part of a case study intended to demonstrate key principles in risk management within the context of the specific market scenarios discussed. These ideas are not to be interpreted as investment recommendations or financial advice. They do not endorse or promote any specific trading strategies, financial products, or services. The information provided is based on data believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Trading in financial markets involves risks, including the potential loss of principal. Each individual should conduct their own research and consult with professional financial advisors before making any investment decisions. The author or publisher of this content bears no responsibility for any actions taken based on the information provided or for any resultant financial or other losses.
Oil's Descent: Triangles, Elliott, Reversion, & BackwardationIn this analysis, we will delve into the oil market’s current state and explain why a significant reversal is imminent.
Contracting Triangle
Oil has been forming a contracting triangle since the beginning of May. The lead-up to the triangle was bearish, so statistically, the breakout should also be bearish. The upper extreme of the triangle is at $84.45, but prices could advance up to $87.67 before invalidating the bearish breakout.
Wave C of E of X
According to Elliott Wave analysis, contracting triangles form five waves (i.e., A, B, C, D, E). Typically, each of those five waves subdivides into a zigzag (i.e., A, B, C). We can clearly count five waves of the triangle and three waves of the final zigzag, indicating that the reversal should occur at any moment.
Mean Reversion
On the daily timeframe, oil has approached the overbought level on three different mean reversion indicators. It has been overbought since June 17, according to the Stochastic Oscillator, and it will be overbought according to RSI and Bollinger Bands at $85.09.
Backwardation
Backwardation, where forward contracts are traded below the expected spot value at maturity, often signifies a bullish outlook for crude oil. However, it can also indicate short-term market stress caused by buyers' panic over excess demand or insufficient supply. This scenario often results from an overreaction, and as future supply and demand expectations come into balance, the oil market tends to experience a selloff towards more rational pricing. Given the current strong state of backwardation in oil futures, this dynamic could unfold, contributing to the next market downturn.
Executing the Bearish Strategy
As this is a countertrend trade, risk should be tight, and one’s stop loss should be adhered to religiously. While unlikely, if prices were to continue their ascent, and you have a wide or flexible stop loss, you could experience a substantial loss.
I believe the best place for a stop loss would be just beyond the end of intermediate wave C at $87.68. If prices move beyond this level, it would invalidate the Elliott analysis and offer a strong indication of a bullish breakout from the triangle. As long as prices hold below this level, the outlook would remain bearish, unless a strong consolidation pattern forms near these highs.
If the analysis is correct and we do see a bearish breakout, prices could easily decline to $65, possibly lower. This would be a reasonably conservative target, but I am planning a discretionary exit as price action develops.
As for entry, this is a personal decision. I see three possible options:
Wait for prices to climb a little higher (less risk at entry if successful, with a chance of entering lower with more risk if unsuccessful).
Wait for prices to decline a bit to confirm the analysis (higher probability of a winning trade, with greater initial risk at entry).
Enter now (somewhere in between options 1 and 2).
Good luck, everyone!
Crude Oil - Wednesday ForecastWe have created a consolidation and formed a short term low for now
I believe price will head to these BSL targets marked in the chart.
15min FVG should stay respected with candles closing above it if revisited, preferably for price to not come back to it.
Can $80 Hold?Crude Oil (August)
Yesterday’s close: Settled at 81.91, down 0.30
WTI Crude Oil futures struggled to hold footing Monday after Chinese GDP came in at 4.7% y/y Sunday night, lower than the 5.1% forecast and the lowest since Q1 2023. Although Industrial Production for June did beat at 5.3% versus 4.9%, it slowed from the prior month’s while Retail Sales also missed and Fixed Asset Investment hit a four-month low. The slate of poor economic data played into the “slowing China” narrative and left a difficult path for Crude Oil which has hit the lowest since June 26th this morning. U.S. Retail Sales data came in better than expected this morning, reinforcing the idea of a strong domestic economy and one that can support prices at the pump. Later today, U.S. weekly inventory data comes into the picture with the private API survey ahead of tomorrow’s official EIA release. Amid such, price action is testing a critical area of rare major four-star support at 79.90-80.18 and one the bulls must defend.
Bias: Neutral
Resistance: 81.47-81.70***, 82.21-82.39***
Pivot: 80.97-81.25
Support: 79.90-80.18****, 78.80-78.94**, 78.05-78.48***, 77.05-77.58***
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Disclaimers:
CME Real-time Market Data help identify trading set-ups and express my market views. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
*Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
crude spot or mcx update edu pur.support 6700 blw expect dwn fall 6670-6628 where hurdel ressta. 6786 abv may again test 6814--6840+++++ in rude spot 80$ support if stya blw thna nxt dwn fall 79.30--78.70 where hurdel ressta 81.55 for nxt up side till 82.20--83$
My view on CRUDEOIL Crudeoil making heading shoulder pattern on short time frame
Looking target 6790-6760--
My view only👆
Keeping on radar Crudeoil 6900 PE
Hero/Zero
👍👍
Shipping prices increasing, Oil going lower, cancel each other?By the graph included, we can see that Asian container freight rate prices are skyrocketing. This is due to disruption & stock.
This is good sign for the overall economy, means not in recession.
With news that Trump is being called the next prez will #oil trend lower?
Maybe one can offset the other?
LSE:INDU SP:SPX NASDAQ:NDX AMEX:USO
Crude Oil MondayCurrently we are between two Daily OB's and high probability bias isnt on the cards right now.
This means we look to intra day liquidity
The 15min +OB should be respected leading to NY open with the two EQH's as DRAW for price.
Short and Simple.
CRUDE**CrudeOil:**
The forecast for this week has two possible outcomes: after the price rises to the top of the channel, it can continue its ascent to the range between 85.77 and 86.46, or it can reverse the trend and fall to the bottom of the channel.
CLQ2024 LongLight Crude Oil Futures are showing signs of a potential bullish reversal. The price has bounced off a support level around $81.80 and is forming a higher low. The trend indicators show a mixed picture with shorter-term (50 and 100 bars) trending up, while longer-term (150 and 200 bars) are still down. This suggests a possible trend change. The entry is placed at the current price, with the stop loss below the recent low. The profit target is set at the next significant resistance level (trend line). The risk-reward ratio is favorable at 1:2. However, the score is 6/10 due to the conflicting longer-term downtrend and the proximity to overhead resistance. Traders should be cautious of potential resistance at the descending trend line around $83.74.
{
"direction":"Long",
"symbol":"CLQ2024",
"interval":"1h",
"entry":82.44,
"stop":81.80,
"profit":83.74,
"risk":640,
"reward":1300,
"quantity":1,
"score":6
}
