Crude Oil - Bull or Bear?
Quick notes on how I am trading it with this sell-off.
The last few weeks WTI Crude has tried to stage a rally but is just unable to do so. While everyone is awaiting to see where the SPR is being filled at price, ultimately, leads the way.
In issue 44 of TheLongVol Report I talked about $82 being an inflection and that broke.
Last week I talked about how this had the shot to really trade lower and here we are.
One thing I’ve learned in my years of trading WTI is that there are countless games played in this market and what you think can happen and should happen with fundamentals rarely does. (Take Russia invasion when we rallied to $130 on that Sunday only to sell off the weeks after).
Right now this is stuck between the 2020 low to the 2022 high at a 50% Fibonacci level.
That combined with where we closed and opened trading last month near $75 should create a trading range for the next few weeks.
Some of you asked questions on this in the market update the other day and given that this has sold off so much it presents a tradeable situation to make some money so I am going to cover 3 ways on how to potentially trade this.
The first way I want to look at it is from