Markets are closed today for Labor Day. However, everyone is watching Hurricane Dorian as creeps at 1mph toward Florida and Eastern US. The recent tariffs escalation by the US and China are expected to hit farmers hard. Dorian may have additional impact on farmers and oil, but it is way to early to tell.
We are watching Crude Oil (WTI) for a possible drop. If Dorian goes West, the supply could be interrupted and we could see increases.
| Scenario | |
|---|---|
| Timeframe | Weekly |
| Recommendation | SELL |
| Entry Point | 55.04 |
| Take Profit | 53.00, 52.00, 50.50 |
| Stop Loss | 56.60 |
| Key Levels | 50.50, 52.00, 53.00, 56.60, 57.70, 59.80 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 57.70 |
| Take Profit | 59.80 |
| Stop Loss | 56.60 |
| Key Levels | 50.50, 52.00, 53.00, 56.60, 57.70, 59.80 |
On the 4-hour chart, the instrument is trading in the lower Bollinger band. The price remains just below its moving averages that are directed down. The RSI is breaking down its longer MA. The Composite is testing its quite strong support.
WTI Crude Oil, D1
On the daily chart, the instrument is trading on the middle MA of the Bollinger Bands. The price remains just below its moving averages that are turning down. The RSI keeps testing its longer MA. The Composite is testing from above its longer MA as well.
Key levels
Support levels: 53.00 (local lows), 52.00 (local lows), 50.50 (June lows).
Resistance levels: 56.60 (local highs), 57.70 (local highs), 59.80 (June highs).
Trading tips
The price has retested its medium-term descending trendline. The fall is likely to continue.
Short positions can be opened from current prices with targets at 53.00, 52.00, 50.50 and stop-loss at 56.60. Validity – 3-5 days.
Long positions can be opened from the level of 57.70 with the target at 59.80 and stop-loss at 56.60. Validity – 3-5 days.
