WTI Crude Oil: Be ready to buy a break above 21.70

Jason Sen DayTradeIdeas.co.uk

WTI Crude May Futures

WTI Crude we wrote: outlook neutral/mildly positive but I very much doubt we are about to rocket higher. I expect more of a sideways consolidation range to establish itself now to ease oversold conditions but a V shaped bounce look unlikely. (As we wrote yesterday).

I am sticking with this outlook – it's certainly working well so far this week.

Support at 2030/10 & first resistance at 2080/2100 were great scalping levels yesterday before we broke higher to 2130/40 & held strong resistance at 2170/2200.

Reports will be updated at about lunchtime GMT if necessary.

Daily Analysis

WTI Crude too risky to run swing shorts now. We are now using 2080/2100 as support to target 2130/40 & strong resistance at 2170/2200. However be ready to buy a break above here targeting 2230/50 & 2310/20. Further gains look for 2350/70 & 2400/2430.

Second support at 2030/10 (held perfectly yesterday) but below here retests 1960/40 & 1925/15. Obviously it's risky to be short the closer we get to zero, but below here look for 1890 & 1860/50. The 2002 low is 1800/1785.

Trends

Weekly outlook is negative.

Daily outlook is negative.

Short Term outlook is neutral.

Author

Jason Sen

DayTradeIdeas.co.uk

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens.

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