CL1! MCL1! Bigger Picture:
Traders should note that news headlines do not always drive the price action. More often, news outlets look for narrative to align with the price action.
Previously, it was about the supply glut and worsening demand due to an uncertain outlook. Now the latest news flow is about Aramco OSP rising, OPEC+ adding another 548K bpd in August — higher than anticipated 411K — of the wounding of involuntary cuts. News outlets now view this as signs of demand growth and low inventories.
What has the market done?
Market has consolidated, building acceptance around microComposite Volume Point of Control at 65.50 (mcVPOC). Market then broke out of this balance.
What is it trying to do?
Market is building value higher; 2-day mcVPOC is at 68.29.
How good of a job is it doing?
Market is holding support and has tested resistance multiple times. It has also held support.
What is more likely to happen from here?
Further movement higher as long as it holds above support and yearly open confluence in the short term.
Key Levels:
• Resistance zone: 68.95 - 68.85
• pHi: 68.87
• 2-day VPOC: 68.29
• pSettlement: 68.38
• yOpen: 67.65
• Support zone: 67.70 - 67.50
• pLow: 67.89
Primary Scenario:
Crude oil pit session begins with open auction in yesterday’s range. Prices move lower to test prior day's low, 2-day balance support in confluence with yearly open. Prices push back higher towards yesterday's settlement and 2-day Volume Point of Control (VPOC) at 68.33.
Secondary Scenario:
Crude oil pit session begins with open auction in yesterday’s range. Market consolidates and chops around pSettlement and 2-day VPOC. Market takes out overnight high, fails to go further higher, and reverts lower. Settles below overnight low, however staying above prior low to continue one-time framing higher for the regular trading hours (RTH).
EdgeClear
P: 773.832.8320
Derivatives trading involves a substantial risk of loss. Past performance is not indicative of future results. Any example trades are not inclusive of fees and commissions.
P: 773.832.8320
Derivatives trading involves a substantial risk of loss. Past performance is not indicative of future results. Any example trades are not inclusive of fees and commissions.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.