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Crude Oil Resistance Level Retest Offers Traders Shorting Opportunity

The energy markets continue to trade back into the low $40 range for front-month WTI Crude Oil before rejecting this price. Today we are seeing a rally back into the highs of last week and September. Since we have traded here before several times then reversed I’m expecting similar price action to occur in the upcoming days ahead. Fundamentally not much has changed in the oil landscape with China still carrying global oil demand. An update on the bearish side sees both OPEC and the IEA make downward global demand revisions to their forecasts this week. Surges across the world in COVID infection rates only strengthen my bearish mindset for crude oil. For these reasons, I want to fade today’s rally and establish a short position. We will be trading the December (Z) contract for additional time and because the volume-leading contract rolls to Z from X at the end of this week. I recommend the following:

SELL GCLZ20 @ 41.30 or @ Market

BUY STOP @ 42.20 ($900 risk per contract)

BUY LIMIT @ 39.50 ($1,800 profit per contract)

OR trade the Mini contract which is 1/2 the exposure per contract – QMZ20

*Risk/reward are calculated before commissions and fees*

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15 MIN CL – TAS Navigator Trend Exhausted & TAS Ratio Crossing Over Lower = SELL

DAILY CL – Testing Resistance Level & TAS Ratio Crossing Over Lower  = SELL

Jace Jarboe | Futures & Options Broker:
Phone: 312-706-7639
Email: jjarboe@danielstrading.com
Broker Bio

 

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About Jace Jarboe

Jace Jarboe is a Futures & Options Broker with Daniels Trading. He is a licensed Series 3 and Series 34 broker with the National Futures Association (NFA). Prior to joining the futures industry, Jace attended Indiana University where he received a Bachelor of Arts degree in Economics. Since 2016, Jace has been devoted to learning all aspects of the futures industry and is dedicated to helping his clients achieve their short and long term trading goals. Jace assists clients in a variety of commodity sectors, with both speculating and hedging, and through utilizing futures, options, spreads, and spot FX. He uses his combined technical and fundamental analysis trading style to identify the best market trends and opportunities available. Jace aims to present trade recommendations which are most suitable for each specific client depending on their risk tolerance and intended trade duration. He has worked with hundreds of clients in his experience. In 2020, Jace launched his own trading advisory to further promote his futures markets expertise to a wider audience. This market newsletter is called the Jarboe Trading Journal and focuses primarily on presenting real-time trade recommendations to subscribers.

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