WTI - 240 - Observe the triangle.
West Texas Intermediate - Light, sweet crude oil is commonly referred to as "oil" in the Western world. West Texas Intermediate (WTI) crude oil is the underlying commodity of the New York Mercantile Exchange's oil futures contracts. WTI is considered a "sweet" crude because it is about 0.24% sulfur, which is a lower concentration than North Sea Brent crude. WTI is high quality oil that is easily refined.
WTI crude oil is important because it is an oil benchmark. The significance of a benchmark in the oil market is that benchmarks serve as a reference price for buyers and sellers of crude oil. Oil benchmarks are frequently quoted in the media as the price of oil. Although there are many different varieties of crude oil, there are three primary benchmarks: WTI, North Sea Brent crude, often referred to simply as Brent crude, and Dubai crude. Brent crude and WTI crude are the most popular benchmarks, and their prices are often contrasted. The difference in price between Brent and WTI is called the Brent-WTI spread. Theoretically, WTI crude should trade at a premium to Brent crude, but this is not always the case. While the two crude oil varieties can trade at similar price points, each one has its own unique supply and demand market, and therefore its price reflects its individual market fundamentals.
(Source: Investopedia).
I thought I'll remind myself and everyone, what we are trading here.
So it's at an interesting spot right now. Either this squeeze is going to continue closer to the apex of this triangle, or it will break the triangle today, with the news of the "EIA Crude Oil Stocks change" report.
My bias is more to the downside, as I would like to see a test of the bottom trend line.
Ideally, I would love to see a break of this trend line and a move lower, towards the $35 levels (but that's really long-term).
I would recommend to observe the break outs, but if you would like to risk it a bit, then here are some set up ideas. Feel free adjust them the way you want it.
BUY:
Entry Order - 49.7
TP - 50.7 (+100 pips)
SL - 49.2 (-50 pips)
SELL:
Entry Order - 48.66
TP - 47.7 (+96 pips)
SL - 49.14 (-48 pips)
Keep an eye on the price action!
WTI crude oil is important because it is an oil benchmark. The significance of a benchmark in the oil market is that benchmarks serve as a reference price for buyers and sellers of crude oil. Oil benchmarks are frequently quoted in the media as the price of oil. Although there are many different varieties of crude oil, there are three primary benchmarks: WTI, North Sea Brent crude, often referred to simply as Brent crude, and Dubai crude. Brent crude and WTI crude are the most popular benchmarks, and their prices are often contrasted. The difference in price between Brent and WTI is called the Brent-WTI spread. Theoretically, WTI crude should trade at a premium to Brent crude, but this is not always the case. While the two crude oil varieties can trade at similar price points, each one has its own unique supply and demand market, and therefore its price reflects its individual market fundamentals.
(Source: Investopedia).
I thought I'll remind myself and everyone, what we are trading here.
So it's at an interesting spot right now. Either this squeeze is going to continue closer to the apex of this triangle, or it will break the triangle today, with the news of the "EIA Crude Oil Stocks change" report.
My bias is more to the downside, as I would like to see a test of the bottom trend line.
Ideally, I would love to see a break of this trend line and a move lower, towards the $35 levels (but that's really long-term).
I would recommend to observe the break outs, but if you would like to risk it a bit, then here are some set up ideas. Feel free adjust them the way you want it.
BUY:
Entry Order - 49.7
TP - 50.7 (+100 pips)
SL - 49.2 (-50 pips)
SELL:
Entry Order - 48.66
TP - 47.7 (+96 pips)
SL - 49.14 (-48 pips)
Keep an eye on the price action!
Comment:
Good trade!