FxWirePro: WTI CL1! buying set up - stay long in near month futures for targets at $38.38 and $40

Technical roundup:

WTI crude oil prices showing more strength after the talks between Saudi Arabian and Venezuelan oil ministers on oil production freezing.

Buying momentum has been intensifying as it has broken crucial resistance at 34.64 levels on an intraday terms but when we consider the short-to- intermediate term trend of this commodity it shows a short term targets upto 38.38 levels and even upto $40 a barrel upon breach of 1st target.

In addition to a bullish pattern candle such as dragonfly doji is traced out at 33.75 on monthly plotting, this has been able to prop up prices effectively after breaking 33.23 support decisively (see grey shaded areas for price conformity when prices pushing up vigorously).

Trading tips: WTI crude near month futures

As the bulls have shown clear buying interest at this juncture (lows of 2009) to substantiate the leading indicators on monthly and daily charts are converging beautifully to the current upswings that would suggest the strength in prices at this point, however, for reversal of previous downtrend is still deemed as hasty decision.

U.S. WTI futures were trading at $36.40 a barrel, up 48 cents from their last close, Short-covering in commodities continues to push prices higher. This week's slide of economic data releases in China, however, will determine if this rally continues.

No harm for short term targets of 38.38 to $40 as we expect the prices to oscillate between 33.23-40 dollars in the near future.

Hence, initiating longs in near month futures position can be used you wish to lock in the price of this WTI crude above current levels of $36.64 a barrel for a targets of $40.

There is no maximum profit for the long futures position. The futures trader stands to profit as long as the underlying futures price goes up. The long hedge involves taking up a long futures position. Should the underlying commodity price rise, the gain in the value of the long futures position will be able to offset the increase in purchasing costs.