Price is beginnning to move into my target range for West Texas intermediate crude oil (Blue/yellow box). I am more long than short but ready for both.

I have spoken about oil several times over the past week and i am still holding onto my reservations about the OPEC meeting due out on the 5th.

Markets have already begun pricing in an output increase, with oil markets seeing daily losses.

The real question for trading opportunity requires that we have an idea on both sodes of the trade. i think it is safe to say that the will be an ouput increase, thats a given but the question now becomes by how much will output increase by? how many barrels?

Too much and we will ultimatley see prices dip, too little and we will likley see a spike in oil prices.

the closer we get to the meeting anouncments, the more volatile price action is likley to be, so expect some turbulence in the lead up. 

Should too much of an increase occur above the expected then I feel $55 per barrel is logical for a short placement.

Counter to this too lottle an increase then I expect to see prices rally above $62.

From a technical perspective i am more long than short based off the last few months of trending prices and lines of best fit.

WTI Oil - Tentative Entry

Mar 03 2021

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