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 [NGF22] No new position justified on a risk/reward point of view.
- RBOB Gasoline [RBF22] Long around $2.1125-2.1248 (yellow band) with stop below $2.0731 and targets at $2.1752 & $2.2050 – See chart
- WTI Crude Oil [CLF22] No new position justified on a risk/reward point of view.
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Trade plan explained
Since the market is currently facing some downward pressure due to lower demand in the past days, I evaluate the $2.1125-2.1248 level (yellow band) as a potential support where the price could find a rebounding floor, while we have some mixed weather forecasts, rather trending towards colder days and thus a slight demand rebound. The recommended objective would be the $2.1752 and 2.2050 levels. My recommended stop would be located just below the $2.0731level (just below previous swing low). Alternatively, you could also eventually use an Average True Range (ATR) ratio to determine a different level that may better suit your risk profile.
RBOB Gasoline (RBF22) Futures (January contract, 4H chart, logarithmic scale)
That’s all folks for today. Have a nice weekend!
As always, we’ll keep you, our subscribers well informed.
Thank you.
Sebastien Bischeri
Oil & Gas Trading Strategist
