Rotational Crude Oil WTI

Some quick and simple observations. The Futures contract on the Crude Oil WTI market is rotational on the daily periodicity currently. The market found support around the prior lower bracket high and closed as an inside day yesterday. We can speculate about an inside day failure for the next day; therefore we can observe the high and low areas for any absorption patterns.

Looking at the hourly perspective we can see a balanced behavior as well. We can lean us on the extremes and expecting a dip above or below the bracket to conclude a possible trade scenario that would lead the market to the other side of balance. You can combine these quick observations with tools such as the VWAP to find areas and levels of confluence.

To be mentioned in the open gap from early March which still is an area to be revisited and filled. The rig count is to be mentioned with a decrease of around 70% from a year ago. U.S Field Oil Production also with a visible drop on the charts.

 

Visit our trading community to learn a more indepth analysis process with various tools such as the VWAP or Footprint chart.

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