Crude Oil Futures: Key Levels and Scalp Trade StrategiesThe daily chart of Light Crude Oil Futures (NYMEX) indicates a long-term bearish trend, with key levels offering opportunities for short-term scalp trades.
Key Observations:
Downtrend Resistance: The yellow trendline starting from 2022 highs continues to cap upward movements.
Support Zone: $66.40 is a critical level where buyers repeatedly defend, creating a strong price floor.
Resistance Levels: $72.58, $77.20, and $84.20 serve as major hurdles for upward price action.
Volume: No significant volume spikes currently, but monitor closely for breakout confirmation.
Scalp Trading Opportunities:
1. Long Trade:
Entry: Near $66.40 support on a bounce.
Targets: $69.00 (nearest resistance) and $72.58.
Stop-Loss: Below $65.90.
Why? Buyers consistently hold this level, making it ideal for quick upward moves.
2. Short Trade:
Entry: Near $72.58 resistance after a rejection.
Targets: $69.00 and $66.40.
Stop-Loss: Above $73.50.
Why? Sellers dominate this zone, offering quick pullback opportunities.
Key Points to Watch:
Bearish Breakout: A high-volume breakdown below $66.40 could send prices to $60 or lower.
Bullish Reversal: Breaking the yellow trendline and $77.20 resistance could spark a rally toward $84.20.
Volume Confirmation: Significant volume spikes near key levels (support or resistance) often confirm a breakout or rejection.
