Crude Oil Futures Analysis – 17Aug2019

Crude Oil Futures closed on Friday at $54.80 per barrel. In a week of non-stop global recession talk, this can be called a good performance! Crude Oil Futures did not go anywhere near their last week low near $50 per barrel.

Over the last few weeks, Crude Oil Futures are consolidating between $50-60 per barrel. The the range is getting narrower! It means we will see a big move of about 20% in crude oil – either up or down – at some point in the next few weeks. $50 per barrel is a strong support, so its possible that we may see an upmove move from around 52 to 64.

The above chart has non-linear analysis of Crude Oil Futures, and this indicates strong support even at 52-53 levels, which is just below the current price of 54-55. But this chart also show a strong resistance at 60-65 levels.

The downward sloping 200 day moving average line indicates that we can’t get too bullish here. Just need to buy and sell with 1-2 dollars profit per trade. Active high volume traders can also buy and sell for 25-50 cents profit per trade.

Our Crude Oil Futures trading strategy is to remain bullish while they are above $50 per barrel, and our default trade is to buy the correction and to take profit on rallies.

[Bonus Trade]
Buy Crude Oil Futures at 54, for Target 56, with Stop Loss 52.

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