Crude oil closed the day slightly positive, on what was a relatively quiet day. As far as today’s chart was concerned, it was a typical swing day, selling off in the morning European Session, and clawing back all the losses to finish positive in the US session.

Classic swing day chart, as Crude Oil remained below VWAP in the morning session, and broke above in the US session

As mentioned in the post over the weekend. I was looking to go short on a pullback, and so have entered a few short positions above $47, as we rallied during the US session this afternoon.

how this plays out over the next week may well be dependent on API inventory figures tomorrow and EIA figures on Wednesday. The forecast is for a large draw, again, at -3.225M. This may halt any major sell off in crude oil, until the official figures are releases. So I will watch the price action with interest over the coming days, to see how the trade plays out.

The charts for July for so far are as follows :

Crude oil VWAP chart. We are still within the downtrend despite today's positive close. Short position will require careful monitoring.
Support and resistance levels for July. $47.40 is the level to watch whilst the trade is live.

As the two charts above show, we have had a bearish July so far. Over Friday and today (Monday 10th July), the action has been sideways. As I have entered short into the market I will be watching the key resistance levels of $47.40 and $47.80. If we break much above this, I will have to reconsider the short position. The current target to the downside is $46 and $45.

I have been keeping track, as always, of the news in the crude oil markets. In general I would not comment here on specific news stories, as there are usually so many, and I prefer to look at the most recent price action to see what the market feels about all the news in aggregate.

All pricing and charts are based on ICE Brent Crude Oil Front Month. Depending on what oil contract you trade, prices for your instrument may vary.

About the author

Trading and Investment

Traded the markets for over 15 years, including Commodities, Bonds, Currencies, Equities, and Indices. I have also worked as a Chartered Financial Planner.
CeMAP, CeFA, DipFA, AdvDipFA, Ba(Hons) Economics, Chartered ALIBF

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.