Crude Oil is a naturally occurring liquid fossil fuel resulting from plants and animals buried underground and exposed to extreme heat and pressure. Crude oil is one of the most demanded commodities and prices have significantly increased in recent times. Two major benchmarks for pricing crude oil are the United States' WTI (West Texas Intermediate) and United Kingdom's Brent. The differences between WTI and Brent include not only price but oil type as well, with WTI producing crude oil with a different density and sulfur content. The demand for crude oil is dependent on global economic conditions as well as market speculation. Crude oil prices are commonly measured in USD. Although there have been discussions of replacing the USD with another trade currency for crude oil, no definitive actions have been taken.
Crude Oil weekly chart study.
We see that the Fibonacci levels as well as the pitchfork boundary coincides and shows a strong resistance and a possible price reversal zone. RSI divergence also substantiates our bias. We will confirm the beginning of a new downtrend only after the wedge breakdown.
SWING TRADE IN JETAIRWAYS
SEPTEMBER FUTURES
NOTE:THIS TRADE IS SUGGESTED ON BASIS OF OIL STUDY
DONE BY THE ANALYST WHO ASSUMES
TO SEE CORRECTION IN OIL MARKETS
BETTER TO CREATE LONG POSITIONS IN OPTIONS MARKETS TO
CAP THE DOWNSIDE
ITS A POSTIONAL TRADE IN JETAIRWAYS
BUY@286.5
STOP@280
TARGET@300
LOT:1200
QTY:2
WTI US Oil prices have contracted forming a triangle, almost cornered right through. Expecting a break soon. Most likely with the upcoming API/Inventory data.
Oil is forming a triangle on intraday time frames. Looks like a good opportunity to trade range breakout today. Prepped-up for both long/short opportunity with a Stop & Reverse strategy.
Charts show multiple build up ranges. Considering time cycles, we're are in short term bearishness. Which would change post a break out above $71.50 while a strong support area can be observed around $66 levels.
