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Part I of Our Crude Oil Trading Strategies Article for this Week of Trade (UNLOCKED).

Crude oil was trading in an uptrend channel on a sixty minute chart time frame since October 3 2019 until January 7, 2020.

Part II of this oil trading strategy article click here (Premium).

The sell-off is now over 1400 points from high 65.00 dollar range in early January to 51.25 on FX USOIL WTI at time of writing.

The 60 minute oil chart below shows the channel trend lines and sell-off.

60 minute, crude oil, chart

The 60 minute oil chart below shows the channel trendlines and sell-off.

The Set-Up.

At some point oil will bounce, how far it bounces depends on a number of technical and fundamental factors that we will look at in detail in Part II of this article (Premium).

The primary basic set-up as I see it includes an over-shoot to the downside at this point considering historical price extensions for crude oil trade (technically speaking) and obviously the Corona virus scare coming out of China has given oil traders reason to take considerable risk off here.

But it will bounce.

We will be looking for a snap-back trade at minimum in the range of 400 ticks at this point, but this range of snap back could be significantly more if oil continues to sell off this week.

On the swing trade side (consideration) I wouldn’t start a swing until you see a considerable trending channel form on lower time – frames. The time frame you choose depends on your trading style, risk, size management and time-frame. Here again, in Part II of this post we will look at those levels in more detail.

We will also look at daytrading levels to watch closely.

Whichever way you look at it a significant opportunity for a long snap-back trade is setting up here and could occur this week.

The monthly crude oil chart that I shared publicly earlier this evening below shows a probable bounce area in the region of 49.50s on FX USOIL WTI.  

Crude oil monthly chart suggests 49.50s possible for bounce. $CL_F $USO $UWT $DWT $SCO $UCO #OOTT

Crude, oil, trading, plan, chart

Crude oil monthly chart suggests 49.50s possible, areas of support and resistance noted FX USOIL WTI $CL_F $USO #OOTT

If you have an interest in how our software will be trading and alerting and recent developments with its structure of trading protocols an article was released earlier today you can find at this link here:

EPIC v3 Crude Oil Code Updates: Drawdown & Short Selling Protocols $CL_F $USO #machinetrading

Part II of this Article (Premium) is available here:

Protected: Crude Oil Trading Plan Part II (PREMIUM): Support levels for a possible bounce. How we will trade this move. $CL_F $USO $UWT $DWT $SCO $UCO #OOTT

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Any questions please send me a note via email [email protected].

Thank you.


Further Learning:

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Article Topics; Crude, Oil, Trading, Strategies, FX, USOIL, WTI, $CL_F, $USO, $UWT, $DWT, $SCO, $UCO, #OOTT