Given the recent second surging wave in crude oil (both Brent and WTI benchmarks) and the previous correction that occurred higher than expected as the market rebounded, the last pullback has given us too little room to go long with a sufficiently comfortable risk-to-reward ratio.

Therefore, I decided to pull those orders and will reposition my projections once the market gives me more confluence with both fundamental and technical signals. For now, I will wait for further confirmation before suggesting any new projections. The ongoing negotiations with Iran and Venezuela, which are supposed to add more barrels of oil to the global supply market, remain unclear. To be continued…

PS: If you have any stocks or ETFs that you would like to be analyzed, do not hesitate to submit them to me, so we can look at them and eventually try to spot some good entry points.

Please note that due to market volatility, some of the key levels may have already been reached and scenarios played out.

Trading positions 

• Natural Gas [NGJ22]
  No new position justified on a risk/reward point of view.
• RBOB Gasoline [RBJ22]
  No new position justified on a risk/reward point of view.
• Brent Crude Oil [BRNJ22]
  No new position justified on a risk/reward point of view.
• WTI Crude Oil [CLJ22]
  No new position justified on a risk/reward point of view.

Brent Crude Oil (BRNJ22) Futures (April contract, daily chart)

WTI Crude Oil (CLJ22) Futures (April contract, daily chart)

Regarding risk management, it is always best to define your strategy according to your own risk profile. For some guidance on trade management, read one of my articles on that topic.

That’s all folks for today – happy trading!

As always, we’ll keep you, our subscribers well informed.

Thank you.

Sebastien Bischeri
Oil & Gas Trading Strategist