Trading the trend: short WTI
A poor demand outlook has led to a near 5% drop in the oil price. With key technical support having given way, we will go short WTI on a minor bounce to around $81 with a stop-loss at $83.40 and a downside target at around $70.
(Partial Video Transcript)
Short WTI looks like a viable trade
Hello and welcome to this week's trading the trend on Wednesday 8 November 2023.
The trend in my opinion is now pointing down with regards to Western Texas Intermediate (WTI). And we have now fallen through not just the August low, but also the 200-day simple moving average (SMA) here at $78 per barrel.
And, therefore, I would like to go short WTI, that is to say crude oil, on a minor bounce back towards the $82 $81 mark, and do so with a stop-loss above the last reaction high, that's to say above $83.40 and a downside target of around the $70 mark or so.
So this week's trading, the trend is to go short WTI crude oil and do so around the $81 mark on a bounce from current levels with a stop loss above the last reaction high at $83.40 and a downside target off around the $70 mark.
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