Trading WTI Crude into the European open on Tuesday Dec 11, 2018
Murali Sarma of Trade Guidance, LLC - InsideFutures.com - Mon Dec 10, 8:48PM CST

Do you think that WTI Crude is bottoming out here? Well if you asked us, we would say we do not know as we do not wish to own the honors of calling tops or bottoms. We leave that to the experts who believe that they can convince you that they can see the future. At TradeGuidance, all we do is try and build a tradeable story of what the market presents in front of us. Remember, markets are never wrong - individuals who interpret or trade it can be right or wrong.

If you were to trade a measured move for WTI into the European open, what would you likely do? Well, we would short it at 51.67 and place our stop at about 51.94 and look for $50 as the profit target. There is a front-run possiblity in this trade if you were scaling in your lots with taking a short say at 51.40 and scaling in at that 51.67 level if the trade began to go against you while perhaps placing your stop a tad bit higher than we actually suggest to be safe and conservative. Yes, we have a chart to support this trade setup which is presented below:

Chart

CL-121018

So what about the fact that we have API news after close and EIA inventory news the following day? Well, we can build a story for you intraday trade warriors on how to trade the price action for tonight into tomorrow. We can't see much ahead since the goal is to make profitable trades intraday and try and be all cash at the end of the day. It is the only way to trade in these volatile environments.

1. Watch for initial resistance at 51.26, if we hold this price point, expect us to try and become range-bound tomorrow and find a resting place at initial support which is 50.40.

2. Now that we have defined your range, it should be easy for you to comprehend your wheareabouts and define your bearings. If we take out initial resistance, expect 51.68 to pose a tad bit of resistance before finding a resting home at 52.39 if buyers were to try and push this higher during the day session.

3. On the flip-side, if we fail to hold initial support at 50.40, expect us to drop to 49.98 which will give ample support unless the bears insist on finding a better value for this intraday. In that case they could perhaps manage to push this lower as far as 49.27 which should find ample support to halt any further decline.