Hey again traders!
We released the below post on our Tradingview channel but decided to share it with you guys here via our blog incase you don't follow us on tradingview or don't have an account.
Since the April 2020 low WTI has been steadily shooting towards the 2008 highs and remains in a very strong bullish trend.
When we have technical and fundamental analysis supporting a direction I would count that the best type of trades we could be in.
Of course I am a day trader and looking at this weekly chart does little good for me, but volatility on the other hand helps me make abnormal profits and what I seek to find is volatility and which assets could it affect.
Point here is that if WTI continues to hold this uptrend it will form a higher low and knowing that higher low I can positon myself to ride wider profits on long positions and even increase my size , while also when WTI eventually finds a top the correction down will be quick and aggressive, hence knowing both the technical and fundamental information of a given asset is vital to my success as a day trader!
The technical analysis here is clear... we are in an uptrend because we are forming higher highs and higher lows... basic! but!! There are fundamental drivers too!
The most recent move in oil futures curves reflects the divergent forces currently driving the global commodity markets. From the recent fundamental standpoint, the weak June Flash PMIs weighed especially on the longer-end of the oil curve, as rising recession risks and tightening financial conditions weaken the demand outlook. At the same time, the world continues to struggle with tight oil supply amid the war in Ukraine and very limited spare capacity and things are only getting worse!
OPEC can't seem to save WTI from heading higher either, because OPEC+ announced faster planned production hikes for July and August, yet it failed to meet its target in May as production declined from the previous month so it will be very very very interesting to see what happens with their promise for July (coming up pretty soon!)
Based on my experience... the OPEC+ supply for July could possibly form the higher low of this uptrend, but only time will tell!
In any case, trading WTI is very lucrative for me right now as I thrive on volatility and absolutely love it!
link valid until 27.7.2022