CL1! It’s Wednesday today, and the DOE release is scheduled for 9:30 a.m. CT. This may provide fuel—pun intended—to push prices out of the two-day consolidation. Also, note that the August contract expires on July 22, 2025. Rollover to the September contract is expected on Thursday/Friday. You can see the pace of the roll here at CME’s pace of roll tool. The chart shows that rollover is about 70% complete, and CLU25 has higher open interest. Note, the front-month August contract is still trading at higher volume.
What has the market done?
Crude oil is in a multi-distribution profile since the peak witnessed during the Iran-Israel conflict. Crude oil formed a strong base above the 64s and traversed towards the 69s. Prices were rejected at these highs and have since reverted back towards the monthly Volume Point of Control, monthlyVPOC.
What is it trying to do?
The market is in active price discovery mode and has formed multi-distributions since June 23. The market has been consolidating after prices at highs were rejected.
How good of a job is it doing?
The market is active and is also providing setups against key levels. Patience to take trades from these higher time frame levels is what is required to trade crude oil currently. Otherwise, there is a lot of volatility and chop that can throw traders off their plan.
Key Levels:
• Yearly Open: 67.65
• Neutral zone: 67.15–67.30
• 2-Day VAL (Value Area Low): 66.40
• Neutral zone: 66.40–66.20
• 2025 Mid-Range: 65.39
• Key Support: 64.40–64.70
What is more likely to happen from here?
Scenario 1: An initial attempt to push higher, pVAL and onVAL finds aggressive sellers pushing prices towards mcVPOC and yMid confluence
Scenario 2: pVAL provides support for further consolidation and break back above yesterday's high and price moves towards yearly Open.
Glossary:
pVAL: Prior Value Area Low
onVAL: Overnight Value Area Low
yMid: 2025 Mid-Range
mcVPOC: Micro Composite Volume Point of Control
EdgeClear
P: 773.832.8320
Derivatives trading involves a substantial risk of loss. Past performance is not indicative of future results. Any example trades are not inclusive of fees and commissions.
P: 773.832.8320
Derivatives trading involves a substantial risk of loss. Past performance is not indicative of future results. Any example trades are not inclusive of fees and commissions.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.