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CL Analysis | Week of January 30th, 2017 | MTB Market Analysis

CL Analysis | Week of January 30th, 2017

Thank you for reading this week’s CL analysis

Before I get into the analysis today, I want to say “thank you” for those that watched our presentation on asymmetrical returns.  As discussed, this is something I look for in my “everyday” trading.  If you are not familiar with the concept of asymmetrical returns, Tony Robbins (world renowned motivational speaker) spent with Paul Tudor Jones (legendary day trader) discussing Paul Tudor Jones’ secret to success.  You can catch this short video here.

Good stuff, right?  You can see a trade that I took in our Live Day Trading Chat room where we hit a target of 127 ticks ($1,270) on the CL Friday…asymmetrical returns.

If you would like to take a free trial in our Live Day Trading Chat Room you can register by CLICKING HERE

CL Analysis

Oil posted its single biggest loss in more than a week on Friday.  At one point, before rallying into the close, oil had lost over 200 ticks.

Despite the fact that there is continued price support from the agreed upon production cuts, there is still considerable pressure from the increase in U.S. oil production.

Baker-Hughes released their weekly rig count report and for the 11th week of the past 12, the number of rigs actively in production has increased.  ariq Zahir, managing member of Tyche Capital Advisors is quoted as saying:

U.S. rig counts and production figures “in the weeks and months to come” could prompt OPEC members to cheat on their agreement to cut back on output, so they don’t lose market share

Earlier in the week the EIA stockpile report showed a 4th straight weekly build in inventory.

With the information that production cuts (by major producers) is reducing global supply and the idea that U.S. producers will re-enter the market on an easing of restrictions by President Trump, it is no wonder that we continue to trade in a narrowing price range.

CL Analysis

Crude Oil CL Analysis – The Charts

I’ve really been talking quite a lot recently about the same thing….Crude is in consolidation mode and will continue to be until we get a better handle on how the OPEC production cuts will be affected by the increase in U.S. producers ramping up production.

This chart shows the consolidation after a reaction off the 78.6% fig level.

CL Analysis

The high or low of the week is made on a Monday or Tuesday of the trading week.   This week the low was made on Monday and the finale “spike” lower on Friday was right to the 61.8% retracement “to the tick”.

CL Analysis

Summary – Oil CL Analysis

As you can see this week’s summary is “light on charts” and the reason is that the market is “light on activity”.  From a big picture perspective it has been more of the same….chop-chop.  And, until we break out of this consolidation pattern we can expect more of the same.

Above the Market

54.30 – 54.70

55.40 – 55.80

56.50 – 56.90

Below the Market

51.80 – 51.40

50.75 – 50.25

49.35 – 49.00

To receive a full oil trading plan every day for CL (Light Sweet Crude), where we will apply our trades based upon the OTG CL technical outlook, please Click-Here and sign up for a Free Trial with The Oil trading Group. You will also be able to join us in our live trading room during this free trial to experience how we put these trade plans into practice in the markets. Have a great trading day, from the Oil trading group. We hope you find our Weekly Oil Technical Analysis helpful.

Disclaimer:

The Oil Trading Group. (“OTG”) does not hold itself out as a Commodity Trading Advisor (“CTA”).Given this representation all information and material provided by OTG is for educational purposes only and should not be considered specific investment advice.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.  (Go to www.OilTradingGroup.com for the full disclaimer).

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Our lead trader Jason Love has been an active day trader for the past 10 years. The Oil Trading Group was founded over 5 years ago to address the glaring need for quality day trading education. Prior to becoming a day trader, Jason ran a 300 seat call center, as the Vice President of Operations. As a veteran of the United States Navy, who served during Operation Desert Storm, Jason understands the value that structure and discipline have in day trading the volatile financial markets. In addition to providing day trading education to customers, he is also providing education services to a large futures trading firm, based in Chicago. When Jason is not trading, he is coaching his son’s Travel Select Youth baseball team and spending quality time with his family.

Jason

Our lead trader Jason Love has been an active day trader for the past 10 years. The Oil Trading Group was founded over 5 years ago to address the glaring need for quality day trading education. Prior to becoming a day trader, Jason ran a 300 seat call center, as the Vice President of Operations. As a veteran of the United States Navy, who served during Operation Desert Storm, Jason understands the value that structure and discipline have in day trading the volatile financial markets. In addition to providing day trading education to customers, he is also providing education services to a large futures trading firm, based in Chicago. When Jason is not trading, he is coaching his son’s Travel Select Youth baseball team and spending quality time with his family.

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