Light Crude Oil WTI Futures #CL has a monthly demand level located around $48.64 that gained control a couple of months ago. The fact that we have had that monthly imbalance in control allowed us to make decisions. 1) No shorts are allowed to trade against a big timeframe demand imbalance that has gained control. 2) Only longs would be allowed. Crude WTI Futures #CL analysis
Light Crude Oil has been rallying for a few weeks now, creating a new weekly demand level around $45.54 and potentially creating a new weekly demand level if the price continues to rally. There is a clear long bias providing buy opportunities on Light Crude Oil Futures, a lot margin for profit on the way up to the weekly supply zone around $73.25 a barrel.
We do not consider any fundamental analysis to trade futures, no earnings announcements or volume. We do not need that to make a trading decision based on supply and demand imbalances. We need to know where those imbalances are located and what is the bigger picture trend on the stock.
Still, if you pay attention to the news, at the beginning of February, Oil prices fell after disappointing US factory data sparked fresh concerns about a slowdown in the global economy. Brent crude futures dropped 0.2% to $62.6 a barrel, and US West Texas Intermediate fell 1.4% to $54.48 a barrel. Oil prices had been buoyed by a new round of supply cuts from Opec and its allies.
Can we make sense of this Light Crude Oil news? Maybe you can, but do we need it? No, we don’t. Price reached a very strong monthly demand level, we are allowed to buy Light Crude Oil, but we are not allowed to sell it. This is the kind of supply and demand analysis we do at Set and Forget.
You can also use various options strategies to take longs at demand imbalances, long calls spreads or any other strategy you might have on your trading plan.
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