Crude: A Bit Further Down?Crude and XLE are in a precarious position and could be on the verge of seeing lower prices. I suspect any pullbacks in the market may cause the energy sector to be a major laggard to the downside. Good luck traders!
CRUDEOILM1! trade ideas
Crude Oil - December SeriesOn 4 hour time frame it is seen that trend is broken on short time frame (Black Color) trendline
Target till major trendline (green colour) is coming to around 6800
Expected Oil price to reverse from there
This chart is only for educational purpose
Do your on study before taking any trades
Crudeoil - November EndCrudeoil Multiple Supports found
Few Resistance Points seen
Trade Upside possible only above 6337 technically with Stop Loss at 6300
This chart is only for educational purpose do your own study before taking any trades
MCL analysisPrice meet double top setup and fall into 76.11 and make flag pattern, the target profit will be around 2nd pole 72.59
If price able to break and close 72.35 , the trend will continue bearish
BEAR POWERCRUDE OIL IN A STRONG BEAR TREND AS CONTINUES IN DOWNTREND CAN GO FURTHER DOWN SUBJECTED TO DEMAND AND SUPPLY WAIT FOR CONFIRMATION i.e a stong bear candle in 15 min its my analysis do yours dont trade
WTI Crude oil - last updateOur overview: Definitely OPEC+ policy disappoint the market. The Cot report released Friday, referring to data until the previous Tuesday, then few day before the OPEC+ meeting, highlighted that the commercial barely increased(1%) their net long positions in options, reverting the trend of the previous report. Furthermore, a news from 'businessinsider.com' say "Saudi Arabia could 'flush' the oil market with a flood of supply to regain control over prices in the face of rising US production. All this might push the market toward more weakness and negativity. In the overnight session price retraced getting closer to the support area @$73.00.
Technical signals: RSI negative and Stochastic negative in oversold area.
Trends analysis: Primary(purple): downward impulsive structure wave 5, intermediate(green): corrective structure wave A, minor(yellow): corrective structure wave C.
Our current strategy: Strictly Neutral, following the market.
Our current position's risk profile @$73.38: delta 0.052, gamma 0.216 Hedging point: not set
Targets
$76.50
$75.00
$74.20
$73.00
$72.40
$71.80
Short Trade Potential opprtunity on USOIL Looking for a Short entry on USOIL
Entry @ 75.19
PTGT @ 73.40
Long term accumulation for crude oilIt seems the fractal has reached a point where a long term accumulation cycle starts. We can still hold the daily range for a while but there's still some serious pressure from the weekly data. Possibility to come up to the weekly downtrend, reverse from the weekly block (two acc candles), reverse and hold and test the greediest (1h untested area) on the bottom without breaking major high TF data points.
OilOil is currently consolidating at the 0.618 retracement from the recent run up. RSI also bouncing at the uptrend. Good risk/reward on the long side here with a stop around ~$72 imo.
CRUDE OILPreferably suitable for scalping and accurate as long as you watch carefully the price action with the drawn areas.
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WTI Crude oil - last updateOur overview: Definitely OPEC+ policy doesn't convince the market. Massive selloff with more tha 500K contract traded, push the price to re-test the trend/neck line. Market could enter in latera trading range.
Technical signals: RSI negative, and Stochastic negative.
Trends analysis: Primary(purple): downward impulsive structure wave 5, intermediate(green): corrective structure wave A, minor(yellow): corrective structure wave A.
Our current strategy: Neutral, following the market.
Our current position's risk profile @$75.70: delta 0.018, gamma 0.192
Hedging point: not set
Targets
$78.70
$77.80
$76.30
$74.00
$73.30
$72.50
DR IDR confirmation short, -0.2 retracement after 0.5 std ADRprice reached projected retracement after 0.5 std reached values. short on crude oil
WTI Crude oil - front expirationOur overview: Strong GDP in US, and hope on the OPEC+ meeting, offset the build in crude stockpile. A bigger then expected production cut would push for a Christmas rally. Today is mandatory stay neutral at least till is gonna be clear the OPEC+ policy.
Technical signals: RSI and Stochastic positive.
Trends analysis: We maintain an overall positive overview with a potential extension till $81.50/$82.00 if OPEC+ will confirm a robust production's cut. Primary(purple): downward impulsive structure wave 4 with target @$80.00/$82.00, intermediate(green): corrective structure wave C, minor(yellow): upward impulsive structure wave 3.
Our current position @$78.78(in scale to a basic number of contracts :
current delta: 0.137
current gamma: 0.198
Targets
$81.00
$79.75
$78.70
$77.00
$76.40
$75.80
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CRUDE OILPreferably suitable for scalping and accurate as long as you watch carefully the price action with the drawn areas.
With your likes and comments, you give me enough energy to provide the best analysis on an ongoing basis.
And if you needed any analysis that was not on the page, you can ask me with a comment or a personal message..
Enjoy Trading... ;)
Managing Oil Risk Around OPEC MeetingsRudyard Kipling wrote in his famous poem, “If you can keep your head when others are losing theirs and blaming it on you, then you’ll be a man, my son.” Shocks from OPEC decisions can leave even the experts on the edge of their seats.
Short-dated options on crude oil are tailor made to address and manage such idiosyncratic risks helping each trader become a man of his own making.
OPEC’s 187th meeting will be held on 30th November. On 22nd November, OPEC announced that the meeting was going to be rescheduled from its original date of 25th November. This is not the first time that OPEC meeting is being postponed.
The 23-member OPEC+ alliance has competing interests which makes agreement among members difficult at times. Like last year, this time again, OPEC is rescheduling its meeting.
Such news impacts oil markets hugely. Prices tanked. Put option premiums spiked. Put volumes broke records. Implied volatilities jumped 8.5% over three days.
DISAGREEMENT OVER PRODUCTION QUOTAS ARE BREWING AT OPEC
Not only was this meeting postponed but it will be held online instead of in-person. This is not the first time. This also occurred a year ago. It shifted its meeting online after fixing production targets at an in-person session in Vienna previously.
Rescheduling of meeting is reported to be due to disagreement over production quotas. Following this announcement, Brent crude prices tanked 5% but rebounded swiftly to trade 2.3% lower. WTI fell 2.6%.
As reported by Javier Blas of Bloomberg, deferment of OPEC production meeting stems from production quota arguments.
The Financial Times reported on 17th November that OPEC was considering an incremental one million barrels per day (bpd) reduction. This is in addition to previous production cut commitments from Saudi Arabia and Russia.
2024 is looking precarious for the OPEC. Feeble demand growth compounded by a backdrop of elevated supply growth. The possibility of the OPEC+ deal of production cuts imploding is small but cannot be ruled out. A failure to come to an agreement can leave the oil market with uncertainty ahead.
IMPLICATIONS OF DEAR OIL
Equity and bond markets globally are in a celebratory mood on cooling inflation. Any shocks to the oil market could send inflation back up again. Refined fuel inventory levels look precariously low at levels unseen since 1982.
Diesel and Heating Oil Inventory Levels are precariously low (Source: Bloomberg )
Compounding low refined fuel inventory is the continued low levels of US Strategic Petroleum Reserves which are at a forty-year low.
US Strategic Petroleum Reserves continue to languish at 40-year lows
BEARS ARE CHARGING OIL PRICES LOWER
Crude prices are down about 20% from its September peak. Solid output from the US, and feeble indicators from China have sent oil prices cooling despite elevated geopolitical threats.
Since touching a high of USD 95/barrel on 28th September, prices have steadily declined with spurts of bear market rallies.
US West Texas Intermediate first continuous futures contract has traded exhibiting strong mean reversion for much of this year
Technicals point to near term overall weakness. Momentum indicators point to sharp sell down risks. Mean reversion indicators point to ambivalence with a neutral direction signal.
US West Texas Intermediate second continuous futures contract has traded exhibiting strong mean reversion for much of this year
Global oil markets are expected to move into surplus early next year, according to the International Energy Agency on slowing demand growth.
OPTIONS MARKET SIGNALS NEAR TERM BEARISHNESS AND LONGER-TERM BULLISHNESS
Pricing of options expressed by way of implied volatilities shows that puts have been more expensive than calls. As a result, the skews are supressed and hovering at 7-month lows.
Cost of options expressed in implied volatilities have shot up for puts relative to calls pushing skews down (Source: CME CVOL )
Inline with the behaviour observed in implied volatilities, charts below summarise the change in open interest between close of markets on 23rd November and 17th November.
Participants have been ramping up puts relative to calls except for options expiring on 29th November and 1st December .
Notwithstanding the positioning of traders and portfolio managers on near term options, options traders have a strong bullish position in longer term (going into latter part of December and next year) with put-call ratio at 0.63 implying five calls (bullish trades) for every three puts (bearish trades).
Open Interest across the forward curve shows higher number of calls relative to puts (Source: CME QuikStrike )
The brewing disagreements among OPEC members are impacting implied volatility on crude oil options. CVol index on crude oil jumped 15% over merely 3 days on the announcement of OPEC meeting postponement.
Volatility has been on the rise amid the ongoing lack of co-operation within the OPEC cartel (Source: CME QuikStrike )
HYPOTHETICAL TRADE SET UP
The path ahead for oil prices looks uncertain. Volatility has spiked and could rise even higher on growing disagreement among OPEC members. If OPEC members go for deeper cuts, oil prices could rally. However, if the prisoner’s dilemma prevails, where OPEC majors continue pumping even more to flood the market, prices could tank.
Amid such ambivalence, CME’s short dated crude oil options are tailored to manage price risks. Benefits of these short-dated options were described in a paper previously published.
This paper posits an options strategy using the weekly crude oil option. OPEC is scheduled to meet on 30th November. A hypothetical trade is illustrated below using options expiring on 1st December.
A long strangle involves holding a long-call and a long-put option at different strikes but with the same expiry and underlying. Strangle on crude oil delivers gains when prices swing wildly. However, the strangle loses money if price moves remain muted. Pay-off from this hypothetical options strategy is illustrated below.
The long strangle requires USD 2.88/barrel (USD 1.47/barrel for long call at 75.5 and USD 1.41/barrel for long put at 74.5). CME Options Calculator can be used to arrive at the latest premium values at the specified strikes. The overall premium for the strangle represents approximately 3.8% of current oil price at $75 (indicative) and the trade breaks even at expiry when oil is either at $71.62/barrel or $78.38/barrel.
MARKET DATA
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4-Hour View on Crude OIL FuturesHello enveryone,
We have identified a strong long signal on the 4-hour chart for Crude Oil futures.
This trade falls under the category of a swing trade, with dual targets: the first at $80 and the second at $82, expected within the next few days.
IBROURI ABDESSAMAD
WTI Crude oil - last updateOverview: After several tentative, finally the trend line has been broken. Yesterday's CoT report (Commitment of Traders) highlighting that commercial and not commercial are reducing their net long positions in options. This could be a signal that area $73/$75) is an accumulation's area, at least for the current conjuncture, confirming our strategy. Eye on API crude oil stock tonight.
Technical signals: RSI and Stochastic in positive area.
Trends analysis: After the movement of the last days we redraw the technical analysis and the trends perspective. A clear head & shoulder closed with the today's breakout of the neck line, and potential extension till $81.50/$82.00. So this is the updated reading: primary(purple): downward impulsive structure wave 4 with target @$80.00/$82.00, intermediate(green): corrective structure wave C, minor(yellow): upward impulsive structure wave 2.
Strategy: Neutral delta, following a potential technical pull back till $75.70! Then positive looking for the upward trend extension till area $79/$80/$82. Stop: not set.
----->>Today's session corrections: @$76.97 from +0.69 to -0.03
Our current delta: @$76.46: -0.12
Light Crude Oil futures.Weekly analysisHello ladies and gentleman,according my analysis To Light Crude Oil futures .there is agreat probability long to 103USD.
Buy potentiel on Crude OIL futures Hello,
There is a buy Signal with high probability and RR for potentiel target of 78,5$ on Crude OIL futures 30 minutes Chart,
This trade IS for short term investement (few hours)
IBROURI ABDESSAMAD
Crudeoil - Path for next few hours!CrudeOil again moving in range in hourly chart after a fall .
Time based calculation and support resistance shows the path as shown hope to reach target on time. and if triangle forms can give breakout after a retest.
