• 4 minutes Why Trump will win the wall fight
  • 9 minutes Climate Change: A Summer of Storms and Smog Is Coming
  • 12 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 16 minutes Washington Eyes Crackdown On OPEC
  • 17 hours is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 6 hours Ayn Rand Was Right
  • 4 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 6 hours Oil imports by countries
  • 8 hours Sanctions or Support: Despite Sanctions, Iran's Oil Exports Rise In Early 2019
  • 5 hours Solar and Wind Will Not "Save" the Climate
  • 4 hours Indian Oil Signs First Annual Deal For U.S. OilIndian Oil Signs First Annual Deal For U.S. Oil
  • 3 hours AI Will Eliminate Call Center Jobs
  • 3 hours NZ Oil, Gas Ban Could Cost $30 Bln
  • 20 hours Regular Gas dropped to $2.21 per gallon today

Range Trading 101

Let’s face it; you don’t have to be a chart reading genius to know that WTI has been trading in a pretty tight range for the last couple of months. After a year and a half of volatility where moves were marked by strong momentum we have entered a period of short lived, half hearted direction changes. This stasis is not the result of a lack of interest or news, but simply that WTI is caught in a “push me pull you” scenario where the two major trends in fundamental outlook contradict each other. The OPEC production cuts should naturally lead to higher prices but at the same time the increases in output from U.S. producers and a regulatory and political environment that makes that easier are adding to already record inventory levels.

It may seem to some that the situation since December is a bad thing for traders, but in reality for most it is anything but. Those that trade energy futures are rarely looking for a long, sustained move as trading is short term in nature. Given that, trading in a solid, fairly predictable range is much easier than trying to get a handle on huge volatility, providing of course that you know the basics of range trading. While I am sure that some readers of these pages fit that description I am equally certain that there are many that do not. On that basis now seems like a good time to lay out some basic range trading strategies.

1: Identify Your Range: There is, in culinary circles, a famous recipe for jugged hare…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



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