Oil prices are higher in early trading after yesterday’s report by the U.S. Department of Energy showed a decrease in domestic crude production. Some analysts think the recent strong gains in oil will be capped soon with a sustainable rise in OPEC production around the corner, while other maintain undersupply will be the theme in the second half of the year. WTI crude trades at a six-month high of $46.46 per barrel at last check.
In Asia, Japan closed for holiday. Hong Kong -1.6% to 21037. China -0.3% to 9569. India +0.1% to 25617.
In Europe, at midday, London -0.5%. Paris -1.3%. Frankfurt -0.8%.
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq flat. Crude +0.9% to $46.46. Gold +0.9% to $1277.20.
Ten-year Treasury Yield +1 bp to 1.84%
(Source: Seeking Alpha)
8:30 Personal Income and Outlays
8:30 Employment Cost Index
9:45 Chicago PMI
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
3:00 Farm Prices
HOD Range Projection = 2084.23; LOD Range Projection = 2059.77; CD3 Maximum Penetration Level = 2109.15; CD3 Maximum Violation Level = 2056.70; Cycle Day 1 Low = 2076.25; 3 Day Central Pivot = 2083.50; 3 Day Cycle Target = 2107.16;10 Day Average True Range = 16.23.
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: June (M) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price can hold 2071 SPOT THEN initial objective is to clear and convert 2076.25 (CD1 Low) for a Positive 3 Day Cycle. Additional upside targets measure 2079.75 followed by 2083.50.
Scenario 2: Failure to convert 2076.25 and subsequent trade below 2071 SPOT increases odds for long liquidation with targets measuring 2059.77 – 2056.50 ATR Max Range Projection zone.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS