This is my plan for Crude Oil.

NYMEX:CL1!   Light Crude Oil Futures
Crude Oil is one of my favorite assets to trade. My trading strategy on the commodity is about waiting for the price to reach key levels, then waiting for clear corrections in those areas, and finally developing setups on the breakouts of those structures towards the next relevant support/resistance level.

The timeframes I use on Crude Oil most of the time are Weekly, Daily, and 4hs.

What is my view from the current levels? After a huge bullish movement, caused mainly by the Russia-Ukraine crisis. We have observed a consolidation in the current zone for the last 40 days. From here, it's clear to me to define the long-term bullish target(140.00) and the long-term bearish target (80.00).

At the moment, I'm not interested in developing setups on the bearish side. However, I see a trading opportunity on the bullish side that I will definitely take if all the conditions go as expected. You can see my setup in the following picture:

The strategy here is to wait for a breakout, wait for a retest, and trade the retest on a new local high. Those retests I'm speaking about tend to take between 4 to 10 days.

It's really important that you can define the setups you are interested in in advance, so you can study all the different variations or situations you may go through and get ready for them. This will improve your trading results. Also when you define the scenarios you want to trade, you are indirectly saying that you will avoid trading in all the other places.

Thanks for reading! I will keep updating this idea. Feel free to share your view in the comments.


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