Bearish below $66.72 and bullish above $67.03, tradeCompass guides today’s oil traders. Light Crude Oil Futures (CL1!) are at $66.74, which is only 0.07% lower than yesterday’s close. This technical analysis uses tradeCompass, part of investingLive.com’s methods, after moving from forexlive.com. For those trading bearish, you can set partial profit targets at $66.52, $66.46, $66.38, $66.28, $66.22, $65.92, and $65.78. If prices go above the bullish mark of $67.03, targets will shift to $67.12, $67.24, and $67.69. Currently, the market is below the bearish line, reinforcing a bearish outlook according to tradeCompass. You can start short positions now or wait for a price pull-back near $66.71.

Bullish Shift And Stop Management

According to tradeCompass, a bullish shift happens only when the price exceeds $67.03. As trades reach the second profit target, it’s wise to adjust stops to your entry point. The analysis shows that price levels act like “magnets,” attracting prices because traders expect high activity there. TradeCompass recommends reducing overtrading and managing stops wisely without crossing directional limits. This light crude oil outlook is educational and uses tradeCompass as a guide instead of a strict rule, tailored to individual trader needs. Find more insights at investingLive.com. Crude oil is currently stuck in a tight range, hovering near the bearish trigger point. This lack of direction suggests that traders should widen their view to consider the broader fundamental landscape in the coming weeks. The technical setup hints that the market may be poised for a bigger move.

Fundamental Pressures And Trader Strategies

Recent data from the U.S. Energy Information Administration shows a surprise inventory increase of 3.7 million barrels, implying that supply is currently outpacing demand in the U.S., the world’s largest oil consumer. This fundamental pressure is affecting prices and supporting a bearish sentiment. Looking ahead, we should also consider OPEC+’s plan to start reducing some voluntary production cuts later this year. While this added supply won’t affect the market immediately, futures traders will begin to factor it in, making it hard to maintain a long-term bullish view without a new catalyst. Globally, there are signs of slowing economic growth in key regions like China and Europe, which could pose additional challenges. A decrease in industrial activity usually lowers oil demand, potentially leading to price drops similar to the declines seen in late 2018 due to trade tensions. This anticipated reduction in consumption complicates the potential for a sustained price rally. Given these fundamental pressures, traders should be cautious about any price rises. Moves toward the bullish mark of $67.03 could provide chances to take bearish positions, like buying puts or selling futures contracts. We recommend using profit targets based on previous value areas and VWAP levels as logical points to exit short positions. Create your live VT Markets account and start trading now.

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