The crude oil (CL) futures market posted a big win last week with a gain of 16.5%.
The rally was mainly the result of the decision by the Organization of the Petroleum Exporting Countries plus Russia (OPEC+) to cut production by 2 million barrels per day.
And while the current US administration is trying to counter that by releasing more of our country’s strategic oil reserves, we still have our sights set on higher prices.
Now that we have the fundamental background on the market, let’s see what the technicals are showing…
Can Crude Continue?
Here’s how I see the CL futures market setting up on the hourly chart…
The CL one hour time frame is in an up trend, with the market making higher highs and higher lows.
The market has an up Fibonacci with an extension price point 98.57, about +660 ticks above the market.
Entry: Counter trend line break bullish in the buy zone.
As long as the market stays in the buy zone, it will be a good idea to turn to the five minute time frame and to look for Tunnel Trader long, Destination Trader long and Chandelier Trader long ideas towards the price target.
The Bottom Line
There are multiple ways to trade the futures, stock and other markets. We can trade the indexes, both up and down, as well as individual stocks…
But I have been working on a special strategy for identifying great stocks that you might want to learn more about.
If you’re interested, check out the important P.S. below…
For more on the markets as well as trading education and trading ideas like this one, look for the next edition of Josh’s Daily Direction in your email inbox each and every trading day.
I’ll be bringing you more of my stock and futures contract trading tutorials as well as some additional trading ideas.
And before you go, head on over to the Traders Agency YouTube channel for breaking market news, live trading sessions, educational videos and much, much more!
Keep on trading,
P.S. I have been working with my team to find what I call “marked stocks.”
These are stocks that are potentially setting up to generate big gains… And you need to get in on them with me.