Trade of the week: long WTI crude oil

(Partial video transcript)

Previous Tesla share price trading outcome

Axel Rudolph: Hello and welcome to this week's "Trade of the week" on Monday the 27th of January, 2025. At the beginning of the year, we went long the Tesla share price and as you can see here on this daily chart of the Financial Bet, the Tesla share price went up and then, basically, it's come off again on these worries that Chinese artificial intelligence (AI) might actually be cheaper than US AI.

But anyway, you can see here that the Tesla share price has gapped lower. So there is a hole, or a gap, between Friday's close and this morning's open so far in the overnight session. And, we still, for our trade though, have our stop-loss here at $373.10. So that stop-loss is still in place. We're still long the Tesla share price.

Previous WTI crude oil trading outcome

What we also did, the week after we went short WTI crude oil but unfortunately, we just got stopped out before our view was completely right. But you need to be respectful with regards to your stops and always stick to those and not widen them. So, I don't regret this one here.

Previous S&P 500 trading outcome

And, last week we went long with the S&P 500. As you can see, we did so here on Monday at around 5,963. It was looking really, really good before we got today's very sharp sell-off. So now we are slightly underwater, just about back at our entry level.

Should we change our position? Well, no, I mean, if you want to, you can move your stop-loss to your entry level to make it a free trade. You may, short-term, get stopped out, though, as the S&P 500 may retest that previous breached downtrend line, which may, though, in the future act as a support line again, also with the low from the 21st January.

The big support level is still where our stop level is, and that is at 5,771, just below the 13th January low. As long as we don't fall through there, the uptrend is still intact. But we have to see, because if we get a sharp sell-off like we did back in mid-December, it could lead to a major reversal being seen. But we are not there yet. So, basically, we keep our stop-loss where it was before.

This week's trading opportunity

Which brings me to this week's "Trade of the week", and we can see that the WTI crude oil price came off a lot, but it is now approaching our key support area here, going back to August of last year. You can see all these lows, all these highs coming in, basically, more or less at the same area around $72.50 down all the way to $71.00. And, I believe that perhaps we can hold there, especially since we've now retested that broken through downtrend line, which may act as a support line because of inverse polarity.

So this week's "Trade of the week" is to buy, or go long, the WTI crude oil price at around $74.00, slightly lower than what it's trading at the moment, with a stop-loss at $71.00, at an upside target at around $80.00 or higher.