Crude Fails at Resistance as Trade Focus Shifts to Tariffs

Energy Update

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WTI Crude Oil Futures (August Futures)

 

Friday’s Settlement: 68.45, up +1.45 [+2.16%] for the week, +1.88 [+2.82%] for the day 

 

Today, futures are higher by +0.80 [+1.23%] to 67.35

 

WTI Crude Oil futures rallied last week in a choppy trade, closing up near our key resistance level of 68.65*** on Friday. Overnight, futures opened muted but have been firm into the US open.

 

The trading environment seems to be shifting. The reality of the tariff situation is back in the forefront of traders’ minds, and a “reflation” trade seems to be taking hold. Precious metals are close to breakout territory while equities have failed at key resistance. 

 

Crude oil will be driven by geopolitical risk and macro trade flows this week as volatility looks to pick back up. President Trump has said that an announcement regarding Russia was coming this week, which is something to keep an eye on. 

 

Data Releases:

 

N/A

 

Technical Analysis:

 

August futures traded into key psychological resistance at 69.50 and failed this morning. Our confidence in our bullish bias was waning on Friday.

 

While we still view risk as being skewed to the upside, 70.00*** will likely feature heavy levels of profit taking. 

 

This week, futures will be driven by geopolitical risk and macro trade flows as the trade environment shifts to focus back on tariffs.

 

President Trump’s announcement on Russia will likely feature heightened sanctions and could produce a reactionary rally. After this announcement, our bias may shift to neutral. 

 

For intraday trading, our pivot and point of balance is set at….

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Futures trading involves a substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

Blue Line Futures is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that the NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets. Therefore, carefully consider whether such trading is suitable for you considering your financial condition.

With Cyber-attacks on the rise, attacking firms in the healthcare, financial, energy, and other state and global sectors, Blue Line Futures wants you to be safe! Blue Line Futures will never contact you via a third-party application. Blue Line Futures employees use only firm-authorized email addresses and phone numbers. If you are contacted by any person and want to confirm your identity please reach out to us at info@bluelinefutures.com or call us at 312- 278-0500

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