It may drag up to 49.40 if it manages to break above decisively. For now, we are on this commodity and advisable to sell on every rally.
The selling indications are bolstering as there seems to be a factor called volumes fading away. Hence, we reckon the previous rallies were only due to short coverings and certainly not to be regarded as unless it breaks above resistance levels.
is showing convergence to the prices rises (currently 14 trending at 62.1708 while articulating).
While slow approached overbought territory but there are no convincing hints of %D crossover (currently %D line at 85.8235 & %K line at 92.2907)
We spotted out the series candles like dojis both on daily and monthly charts and spot price is still fallen below moving average curve on monthly charts.
Trade tips: Short near month CL1! futures
Light Sweet Crude Oil (WTI) and options are the world's most actively traded energy product. WTI plays an important role in managing risk in the energy sector worldwide because the contract has the most liquidity and most transparency.
So from current levels keeping speculation mindset we recommend shorting near month for target towards $46.50 levels again, however short term traders keep a strict stop loss at 48.50 levels. Thereby, we have attractive risk reward ratio.
If puts are overpriced relative to calls, the arbitrager would sell a naked put and offset it by buying a synthetic puts. Similarly, vice versa when you think calls are getting overpriced in relation to puts.
Arbitration can also be possible through box spreads where buying debit call spreads and debit put spreads for a risk-free returns.
The opportunity for arbitrage in options market exists once in blue moon for individual investors as price discrepancies often appear only for a few moments.
Alternatives: Since we could foresee 46.50 as a strong support if it fails to hold onto 48.10. It is likely to drop and advisable to short near month at spot levels for immediate targets at 46.50 with stop loss at 48.50, thereby risk reward would be 1:2.