Crude oil is losing volatility, having locked in a narrow trading range. Usually that deprives the market from a directional bias, but increases the odds of spikes and quick liquidity moves to the edges of the trading range and beyond with a possible mean-reversion activity followed after (as shown at the chart).
Given the lack of driving narratives, it’s possible to observe quick breakouts to both sides of the current trading range and further slowing down.
That opens some opportunities for day traders, but for swing and position traders, opportunities might be limited for now.
Traders will monitor for the petroleum status report and stock changes for the oil on Wednesday (regular report from eia.gov).
Don't forget - this is just the idea, always do your own research and never forget to manage your risk!
Given the lack of driving narratives, it’s possible to observe quick breakouts to both sides of the current trading range and further slowing down.
That opens some opportunities for day traders, but for swing and position traders, opportunities might be limited for now.
Traders will monitor for the petroleum status report and stock changes for the oil on Wednesday (regular report from eia.gov).
Don't forget - this is just the idea, always do your own research and never forget to manage your risk!
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.
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.