Gold intraday trading analysis with pivot points and RSI

Intraday Crude Oil Analysis: Resistance and Support Levels

In today’s intraday analysis, crude oil (WTI) prices test key levels, with 69.25 as a critical pivot point. Below, we outline actionable strategies, alternative scenarios, and essential support and resistance levels to guide your trading decisions.

Gold Support and Resistance Levels for Intraday Traders

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Pivot Level: 69.25

The 69.25 level is the focal point for today’s analysis, determining whether traders should adopt a bearish or bullish stance.

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Our Preference: Short Positions Below 69.25

• Trading Strategy: Initiate short positions while crude oil remains below the pivot.
• Targets:
  • Primary Target: 68.45
  • Secondary Target: 68.05

This approach aligns with bearish sentiment as long as the pivot acts as resistance.

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Alternative Scenario: Upside Potential Above 69.25

• Trading Strategy: If crude oil breaks above 69.25, consider shifting to long positions.
• Targets:
  • Primary Target: 69.70
  • Secondary Target: 70.30

This scenario assumes a bullish breakout, with the potential for significant gains above resistance.

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Market Commentary

"As long as 69.25 is resistance, look for choppy price action with a bearish bias."

This commentary highlights that traders should expect volatility, with a preference for a bearish outlook below the pivot.

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Key Support and Resistance Levels

Level	Role	Notes
70.30	Strong resistance	Key upside target in a bullish scenario.
69.70	Secondary resistance	Marks the next milestone above the pivot.
69.25	Pivot and resistance	A decisive level for intraday market direction.
69.04	Last traded price	Reflects the current state of the market.
68.45	Primary support target	Suggests continued bearish momentum.
68.05	Secondary support target	Confirms strong bearish sentiment if reached.
67.50	Strong support	A potential floor in a bearish trend.

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Trading Tips for Intraday Crude Oil Traders

1. Stay Focused on the Pivot Level

Monitor the 69.25 level closely. It is a critical point for determining whether the market will favor bulls or bears.

2. Risk Management is Key

• Stop Loss: For short positions, place stops above 69.25. For long positions, place stops below this level.
• Position Sizing: Ensure your lot sizes align with your trading plan and account size.

3. Follow Momentum Indicators

• Use indicators like RSI or MACD to confirm market sentiment.
• Look for divergences near the pivot for early signals of potential reversals.

4. Prepare for Volatility

Choppy price action is likely around the pivot. Be patient and wait for clear confirmations before entering trades.

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Conclusion

Crude oil prices are consolidating around a critical pivot at 69.25. As long as this level holds as resistance, traders should adopt a bearish approach, targeting 68.45 and 68.05. However, a break above 69.25 would signal bullish momentum, with upside targets of 69.70 and 70.30.

By staying disciplined and using effective risk management, you can take advantage of today’s market movements and capitalize on intraday trading opportunities.

Happy trading!

Frequently Asked Questions (FAQ)

Your guide to understanding crude oil trading and technical analysis.

General Questions

What is a pivot point in trading?

A pivot point is a technical analysis indicator used to determine overall market trends across different timeframes. It acts as a potential support or resistance level.

Why is 69.25 a critical pivot level for crude oil?

The 69.25 level serves as a pivotal price where market sentiment can shift between bullish and bearish, helping traders decide their intraday strategies.

Trading Strategies

Should I trade crude oil based on pivot levels alone?

While pivot levels provide valuable insights, they should be used alongside other indicators such as RSI, MACD, and trend lines to make informed trading decisions.

What is the best stop-loss strategy for crude oil trading?

A good stop-loss strategy involves placing your stop just beyond key support or resistance levels to minimize risk while allowing for market fluctuations.

Risk Management

How can I manage risk effectively when trading crude oil?

Effective risk management includes using stop-loss orders, diversifying your trades, and ensuring your position sizes are aligned with your risk tolerance and capital.

What should I do during periods of high volatility?

During high volatility, consider reducing position sizes, trading with tighter stop-loss levels, and avoiding over-leveraging to protect your capital.