• 4 minutes Trump will meet with executives in the energy industry to discuss the impact of COVID-19
  • 8 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 11 minutes Why Trump Is Right to Re-Open the Economy
  • 13 minutes Its going to be an oil bloodbath
  • 2 mins "Saudi Armada heading to U.S.", "Dumping" is a WTO VIOLATION.
  • 46 mins Cpt Lauren Dowsett
  • 4 hours Death Match: Climate Change vs. Coronavirus
  • 2 hours Free market or Freeloading off the work of others?
  • 2 hours ‘If it saves a life’: Power cut to 1.5 million Californians
  • 5 hours US Shale Resilience: Oil Industry Experts Say Shale Will Rise Again
  • 6 hours Trump will be holding back funds that were going to W.H.O. Good move
  • 6 hours Ten days ago Trump sent New York Hydroxychloroquine. Being administered to infected. Covid deaths dropped last few days. Fewer on ventilators. Hydroxychloroquine "Cause and Effect" ?
  • 7 hours Russia's Rosneft Oil is screwed if they have to shut down production as a result of glut.
  • 57 mins Which producers will shut in first?
  • 1 hour Washington doctor removed from his post, over covid
  • 5 hours How to Create a Pandemic
Alt Text

The Largest Oil Market Intervention In History?

While the figures quoted in…

Alt Text

Big Oil Raises Debt To Ride Out Price Crash

As prices crashed, the supermajors…

Alt Text

Demand Destruction Will Decimate Oil Prices

The long-term ramifications of the…

Editorial Dept

Editorial Dept

More Info

Premium Content

Assessing Crude After A Historic Drop

Last week, there was an example of why setting and sticking to stops, something I frequently stress, is so important.  On Friday, I wrote that it may be worth trying a very risky, long WTI trade given the proximity to the previously rock-solid $42 support level. If you did so, I hope that you read all the way through that piece and set a stop at $41.50. That was an important element of the trade, and would have been triggered, forcing a small loss before the collapse over the weekend. It is a classic case of a time when staying disciplined enough to hit a stop-loss turns a losing trade into something that feels like a win.

Whether you did or not, though, the massive gap that occurred over the weekend pushed WTI futures through that support and into a new range and the next question is, as it always is, where next?

The first thing to do is to identify what that new range might be.

Monday’s historic collapse overshot the mark, as these things are wont to do, and hit a low of just below $28 before bouncing back. That bounce was also exaggerated, with WTI reaching just over $36 before settling back down. That leaves us with an effective range for now of $28-36.

As I write, the market is trading at $32 and change, right in the middle of that range.

The first thing to understand when trying to assess what next is that other than for very basic, broad-based things like identifying a possible range to work with, technical analysis is…






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News