We see bulls gaining momentum in pattern.
After the talks between Saudi Arabian and Venezuelan oil ministers on oil production freezing, the recent wildfire in Canada has also brought down supply glut pressures.
and converging rising prices with stern candles such as dragonfly is traced out at 33.75 on monthly plotting, this has been able to prop up prices effectively after breaking 33.23 support decisively (see grey shaded areas for price conformity when prices pushing up vigorously).
WTI crude oil prices were 48.71 yesterday which is 7-months highs, while buying momentum on has also been intensifying as it has broken crucial resistance levels at 43.17, 46.50 and now at 48.14 levels but currently approaching near channel resistance is a little cause of concern.
We could foresee pressures upon substance above 48.14 levels.
Trading tips: WTI crude near month
We continue to recommend initiating longs in near month position on every dips which can enable you to lock in the price of this WTI crude above current levels of $47.77 a barrel for targets of $49 levels.
There is no maximum profit for the long position. The trader stands to profit as long as the underlying price goes up.
The long hedge involves taking up a long position. Should the underlying commodity price rise, the gain in the value of the long position will be able to offset the increase in purchasing costs.