WTI Crude Recap & Daily Forecast from Jason Sen – Day Trade Ideas

 

24 Feb, 2020

WTI Crude April Futures

WTI Crude we wrote: There is a good chance that we have already topped out after a negative candle yesterday in overbought conditions so risks are to the downside. Be ready to sell a break below 5330 targeting strong support at 5280/70. Try longs with stops below 5240.

Perfect! Our buying opportunity at 5280/70 hit, with longs offered a good profit 70-80 ticks on the bounce to first resistance at 5340/50.

This morning we gap lower through 5280/70 (now today’s high) to target 5190/80 & 5160/50. We bottomed exactly here as I write.

Today’s Analysis

WTI Crude gaps lower over night as far as 5160/50. First resistance at 5220/30 should be quite strong but above here 5270/80 & resistance at 5300/20. If we unexpectedly continue higher look for 5340/50. A break above 5370 targets 5385/90 & 5405/10 before the high at 5460/66. Gains are likely to be limited as we head in to overbought conditions but we could reach 5490/5500.

Holding below 5220/30 retests minor support at 5160/50. On further losses look for a retest of last week’s low at 5125/15. A break lower targets 5075/65.

Trends

Weekly outlook is neutral Daily outlook is negative Short Term outlook is neutral

 

Financial Markets and Political Commentary

 

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About the author

JASON SEN Began to study technical analysis in 2006 and established Daytradeideas, the leading provider of daily technical analysis to independent & professional traders within the investment bank community for Stock Index, Energy & Fixed Income products, advising dozens of traders at up to 15 major investment banks and hedge funds on market movement, throughout each trading day on The Bloomberg Professional® service with trade ideas – entry, exit and target levels in daily reports published before the Futures markets open in Europe.