I am planning on setting my account up for a long position with WTI targets above 75. I believe the market is getting ready for another bullish move, failing which we will see oil dropping to the psychological level established at 72. This trade is not for day traders or those whose trading account can't take a hit. The fundamentals are still bullish with geopolitical tensions causing whipsaws in global markets. Still, I believe oil will be testing new highs in the weeks to come. The trigger could be weather, an outage, Iran sanctions issue escalating, etc. Time will tell.
I plan to stagger my entries starting with a small long position at 73.6 and gradually add if the market reacts adversely in the days to come.
I plan to stagger my entries starting with a small long position at 73.6 and gradually add if the market reacts adversely in the days to come.
Comment:
Did not expect the commodity to crash at this magnitude. Got stopped out, and I plan to watch on the sidelines for signs of recovery.