WTI CRUDE “..likely to be a base building exercise in the days ahead” Recap & Daily Forecast from Jason Sen – Day Trade Ideas

 

24 Mar, 2020

WTI Crude May Futures

WTI Crude probably establishing a sideways trading range, which is likely to be a base building exercise in the days ahead. We wrote: Gains are likely to be limited with bears in control but a bounce targets 2240/60, 2295/2305 & perhaps as far as 2335/45. Unlikely but a break higher meets resistance at 2420/50.

Although I thought it was unlikely…we reached 2479!! Reports will be updated at about lunchtime GMT if necessary.

Today’s Analysis

WTI Crude meets resistance at 2520/40 & 2580/2620 but could reach as far as 2700/2720 where we watch for a high for the day. Further gains meet strong resistance again at 2780/2800. Might be worth scaling in to shorts across these 2 levels. Stop above the last swing higher at 2850.

The 2450/00 level is important today. Holding below here is more negative, targeting 2380/60, 2330/10, perhaps as far as 2275/55. Expect support at 2200/2180 (& the downside should be limited if we are establishing a sideways trend as I expect). However further losses risks a retest of the May contract low at 2070/50. Below $20 targets 1980/70 & 1925/15. Obviously it’s risky to be short the closer we get to zero, but below here look for 1890 & 1860/50. The 2002 low is 1800/1785.

Trends

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

 

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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.