WTI Crude Oil Trading Analysis: 02-September-2025

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Week Ahead Plan: September 2-6, 2025

Analysis Period: August 26-30, 2025 Review | September 2-6, 2025 Outlook
Market: WTI Crude Oil Futures (CL1!)
Methodology: Dual Renko Chart System ($0.25/15min + $0.50/30min)
Current Price: $64.00 (August 30, 2025)
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Strategic Outlook & Market Setup

Primary Scenario (70% Probability): Pullback First, Then Recovery
What to Expect: Market opens lower Tuesday ($63.00-63.50 range) due to bearish signal on short-term chart. This creates a buying opportunity if support holds.
Trading Plan:
  • Tuesday Opening: Expect gap down - don't panic, this was anticipated
  • Buy Zone: Look for entries between $62.00-63.50 (strong institutional support)
  • Confirmation Needed: Wait for short-term trend to flip bullish again before buying
  • Target: Still aiming for $66.50 but may take extra 3-5 days to get there


Secondary Scenario (25% Probability): Sideways Consolidation
What to Expect: Market trades in $63.50-64.50 range for several days while technical signals realign.
Trading Plan:
  • Strategy: Be patient - don't force trades in choppy conditions
  • Wait For: Clear breakout above $64.50 with volume
  • Risk: Could waste 1-2 weeks in sideways action


Low Probability Scenario (5% Probability): Immediate Continuation Up
What to Expect: Market gaps up above $64.25 and keeps rising.
Trading Plan:
  • Verify: Make sure both short-term and long-term signals turn bullish
  • Caution: Be skeptical without strong volume confirmation
  • Action: Can buy but use smaller position sizes until confirmed

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Market Risk Factors & Monitoring

Critical Support Level: $62.00
  • Why Important: Massive institutional buying occurred here - if it breaks, the bullish case is dead
  • Action If Broken: Exit all long positions immediately, wait for new setup
  • Probability of Break: Low (15%) but must be respected


Key Events This Week:
  • Tuesday: ISM Services data (economic health indicator)
  • Wednesday: Weekly oil inventory report (could cause volatility)
  • Friday: Jobs report (affects overall market sentiment)


Warning Signs to Watch:
  • Technical: Short-term trend staying bearish for more than 3 days
  • Volume: Declining volume on any bounce attempts
  • Support: Any trading below $62.50 for extended periods
  • Time: No progress toward $66.50 target within 10 total trading days


Positive Signs to Look For:
  • Technical: Short-term trend flipping back to bullish (key confirmation)
  • Volume: Above-average volume on any recovery moves
  • Support: Strong buying interest at $62-63 zone
  • Momentum: Clean breakout above $64.50 with follow-through

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Forward-Looking Adjustments

Modified Risk Management:
  • Position Size: Use 50% of normal position size until both timeframes align bullish
  • Stop Loss: Tighter stops at $62.75 (just below support zone)
  • Entry Patience: Don't chase - wait for pullback to support levels
  • Profit Taking: Be more aggressive taking profits at first target ($66.50)


Revised Entry Strategy:
Before Buying, Confirm ALL Three:
  1. Price: Trading at or near $62-63 support zone
  2. Technical: Short-term trend signal flips back to bullish
  3. Volume: Above-average buying interest visible


Timeline Expectations:
  • Days 1-3: Expect pullback/consolidation phase
  • Days 4-5: Look for bullish confirmation signals
  • Days 6-10: Resume advance toward $66.50 target if signals align
  • Beyond Day 10: If no progress, reassess entire strategy


Success Metrics:
  • Minimum Goal: Protect capital during pullback phase
  • Primary Target: $66.50 within 2 weeks (revised from 1 week)
  • Risk Limit: Maximum 2% account loss if support fails
  • Time Limit: Exit strategy if no directional progress within 10 days total


Simplified Decision Framework:
Green Light to Buy: Price near $62-63 + Short-term trend bullish + Good volume Yellow Light (Wait): Mixed signals, choppy price action, low volume
Red Light (Exit): Price below $62, bearish trend continuing, time limit exceeded
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Bottom Line: The bigger picture remains bullish, but short-term signals suggest a pullback first. Use any weakness to $62-63 as a buying opportunity, but only with proper confirmation. Be patient - the setup is still valid but timing may be delayed by a few days.

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Document Classification: Trading Analysis
Next Update: September 6, 2025 (Weekly Review)
Risk Level: Moderate (controlled institutional setup)

This analysis represents continued validation of a systematic, institutional-grade trading methodology with demonstrated predictive accuracy and risk control capabilities. This is a view that represents possible scenarios but ultimate responsibility is with each individual trader.

Risk Disclaimer: Past performance does not guarantee future results. All trading involves risk of loss.

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