$CL Market Analysis | Oil Market Weekly Technical Outlook for February 29th – March 4th

Oil Market Overview – Week of 2/22/2016 

Our analysis last week included two levels that we felt would hold and would be tradeable areas.   And indeed that was the case.   For review of these levels take a look at last weeks “weekly” analysis post.  

Weekly Analysis for 2.22.2016 - completed on 2.28.2016

 

The Oil Market was largely in a sideways trading range as the market prepared for an announcement this week of a potential production freeze agreement between OPEC and Non-OPEC producing nations. Sentiment for upcoming week is Neutral | Choppy Trading Conditions

Daily Chart

oil market

CL tested the top of this bearish channel and was rejected.  The Oil market has begun to trade sideways but is still significantly below its 200 period SMA.

But until we break above the channel and start to make higher highs, my overall sentiment remains bearish.

240-Minute Chart

oil market

We crossed the 200 period SMA and have closed above it during this past trading week.  The Oil market has clearly moved into a sideways (neutral bias) and will present some difficult trading conditions until we begin to start trending again.

My overall sentiment has shifted to Neutral.

60 Minute Chart

oil market

 

This chart continues to show just how choppy and “sideways” the Oil market has become.  In a classic range bound market, the high of the range is tested and rejected and then the low is tested and rejected.  This pattern has been repeating itself (in a $5.65 range) since early January 2016.

My overall sentiment remains Neutral.

Weekly Price Targets

These are price points on the chart where I would be interested in making a trading decision.  I would fade the long targets to get short and fade the short targets to get long.

Long Targets

34.00 – 34.30

34.85 – 35.00

35.50 – 35.70

Short Targets

31.04 – 30.80

29.84 – 29.64

28.65 – 28.50

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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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