Watch For This WTI Crude Buying Opportunity After Stunning 150% Recovery

Published 05/06/2020, 04:02 AM
Updated 07/09/2023, 06:31 AM

WTI Crude bottomed exactly at minor support at 2160/70 targeting 2235/55 and strong resistance at 2330/60, for a potential 150 ticks profit but shorts were stopped above 2400, giving back half of the profit. If you managed to jump back into a long we shot higher to 2460/90 and even as far as 2600.

Today’s Analysis

WTI Crude stunning 150% recovery over the past week. Key support at 2390/70. Stop below 2340. A break lower targets 2310/00 and a buying opportunity at 2240/20, with stops below 2190.

Longs at key support at 2390/70 target 2410/20 then first resistance at 2460/80. Shorts are risky here. A break above 2500 re-targets 2530, 2570/80 and 2600/10. Further gains certainly look possible before we become severely overbought. I’m looking for a swing trade selling opportunity at 2800/2850, with stops above 2950.

Trends

  • Weekly outlook is negative
  • Daily outlook is positive
  • Short Term outlook is positive

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