CL1! MCL1! BZ1! Macro:
Geopolitical tensions remain high and markets are now likely to price in our scenario discussing ongoing air and missile war, given one-off intervention from the US thus far. According to Reuters, the U.S. now assesses that Iranian retaliation could occur within the next two days.What happens next is anybody’s guess but as traders, it is important to navigate these uncertainties with scenario planning and/or reduce risk to account for increased volatility.
We also get Services and Manufacturing PMI data today and PCE Price Index on Friday. Chair Powell is set to testify on Tuesday 9am CT.
Key levels:
Jan 2025 High: 76.57
2025 High: 78.40
2025 CVAH(Composite Value Area High): 75.68
Key LIS zone: 73.50-73.15
We anticipate the following scenarios in crude oil:
Scenario 1:
Prices remain elevated as tensions remain high, despite limited retaliation, however, the situation overall now escalated beyond return to diplomacy.
Scenario 2:
Any push towards de-escalation, unlikely in our analysis, but given the headline risk, crude prices may remain volatile and come off the highs.
Given our key LIS (Line in Sand) zone above, we favor longs above this and shorts below this zone.
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.
Related publications
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.
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.
Related publications
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.