hello traders ,,,
The price of Crude Oil Continues to run up against long-term resistance when looking at the 2017 Opening Range High of $55.21/bbl and Andrew’s Pitchfork that is drawn off of three key pivots in 2015 and 2016. When looking at the long-term chart, the low volatility can be worrisome. We recently shared how last week; Crude Oil posted its lowest weekly trading range in 13-years.
The volatility has caused many to play a strangle options strategy that benefits off of lower volatility with an expectation over the next six months that price would remain between $45/65 per barrel. However, while we’re at resistance, we should be cognizant of the bullish forces behind the price of crude Oil.
The last two times OPEC cut production in 2003 and 2008; the price rose significantly over the following years. Additionally, as OPEC pulls back market supply, despite the US quickly gaining market share, we see Forward Prices in Crude Oil demonstrating that supplies should eventually tighten. We also saw this week a premium for the front-month contract relative to the 12-month contract, which is known as backwardation and happens when traders sell later months to lock in gains and can communicate a tightening in supply in the coming months.
thank you all guys ,,,
The price of Crude Oil Continues to run up against long-term resistance when looking at the 2017 Opening Range High of $55.21/bbl and Andrew’s Pitchfork that is drawn off of three key pivots in 2015 and 2016. When looking at the long-term chart, the low volatility can be worrisome. We recently shared how last week; Crude Oil posted its lowest weekly trading range in 13-years.
The volatility has caused many to play a strangle options strategy that benefits off of lower volatility with an expectation over the next six months that price would remain between $45/65 per barrel. However, while we’re at resistance, we should be cognizant of the bullish forces behind the price of crude Oil.
The last two times OPEC cut production in 2003 and 2008; the price rose significantly over the following years. Additionally, as OPEC pulls back market supply, despite the US quickly gaining market share, we see Forward Prices in Crude Oil demonstrating that supplies should eventually tighten. We also saw this week a premium for the front-month contract relative to the 12-month contract, which is known as backwardation and happens when traders sell later months to lock in gains and can communicate a tightening in supply in the coming months.
thank you all guys ,,,
