Technical Analysis:
Today, the WTI Crude Oil futures experienced a negative extension in their price, and they reached an important support level around $75. On an hourly basis, it seems like wave 3 may have exhausted. This suggests a potential change in the price direction.
Scenarios:
1. Scenario 1 - Positive Rebound. It's realistic to expect a rebound in the price to around $80. This means the price may go up from the current level.
Strategy for Scenario 1:
- Set the position's Delta to positive, following your investment criteria.
- First target: $77.50
- Strategy on reaching target 1: Set the position's Delta to zero
- Second target: $79
- Strategy on reaching target 2: Set the position's Delta to zero
2. Scenario 2 - Negative Acceleration. If the price breaks down below today's low of $74.91, we could see a further decline to around $73.90. This would indicate a negative acceleration in price.
Strategy for Scenario 2:
- Set the position's Delta to negative, following your investment criteria.
- First target: $73.90
- Strategy on reaching target 1: Set the position's Delta to zero
- Second target: $72.50
- Strategy on reaching target 2: Set the position's Delta to zero
Summary:
The technical analysis suggests a potential short term technical change in the price direction. We consider a positive rebound strategy if the price hold level $75. I the price drops below $74.91 experiencing a negative extension, we will consider a short strategy.
Make sure to follow your investment and adjust your position's Delta accordingly to manage your risk.
Investment criteria we highly recommend:
CONSERVATIVE strategy: max position's Delta value (+/-) 0.20
MODERATE strategy: max position's Delta value (+/-) 0.30
AGGRESSIVE strategy: max position's Delta value (+/-) 0.40
Please note that investing in derivatives involves hight risks. We strongly advise against invest in future or options naked (not hedged), and to carefully follow your investment strategy criteria and risk management.
Delta Zero
Technical Analysis team
Note
In yesterday's session, in area 77$ we rebalanced of our position's delta, and this morning in area 75$ again. The forecasts are currently confirmed with the first target in the 77.50$ area, and mandatory rebalancing on the breakout of yesterday's low.Note
triangle formation!!! We rebalanced the position's delta. Will follow a new chart update.Trade closed: target reached
As forecasted on $77.50 we rebalanced our position's delta.
Delta Zero team.
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.
Delta Zero team.
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.