2019 – The Year of Consolidation For WTI Crude, Triple Bottom Extends Rallies – Reshuffle Oil Hedging Setup

Global crude oil prices have regained buying sentiments of-late, with Brent and WTI crude futures seem to have been staged for 2nd consecutive month’s gains after the recent lows of $56.17, with year lows of 52.19 the Brent rallies about 25.71%, while WTI crude has risen from $44.37 lows to the recent highs of $63.33 level (surged 36.23%).

Currently, WTI prices continued its bullish streaks to the prevailing $61.94 levels a brl (while articulating) or by 11.92% for this month.

Technically, WTI crude price consolidation looks stronger upon triple bottom formation with bottom 1 at $50.63, bottom 2 at $50.55 and bottom 3 at $51.03 levels.

While hammer candle at $52.27 level to propel upswings above DMAs with bullish crossover, and leading oscillators to substantiate.

Both RSI and Stochastic curves show upward convergence to the prevailing price upswings to indicate the strength and intensified buying momentum. Major hurdle for both Brent and WTI prices would be 100-EMAs for further uptrend continuation, it may probably require further breakthrough in US-China trade talks to move the oil market higher.

Fundamentally, a report by OPEC also indicated that production outside of the cartel may decline in 2020, particularly within the US shale basins, which added further bullishness to the energy commodity market.

Hence, we come up with some trade updates on crude oil derivatives trades: We advocated crude oil derivatives trades on hedging grounds.

Strategy reads this way: Add longs in CME WTI futures of January’2020 month deliveries.

Contemplating above technical rationale we wish to maintain longs for now in CME WTI futures of January’2020 month deliveries.

Earlier, our risk reversal strategy by going long in Brent Dec’19 10D call versus short Dec’19 10D put fetched desirable yields.