Commodities moving higher this week: crude oil
Crude oil futures are moving out of an 80-day cycle trough in the next days ahead; watch for absorption at the lows at the open especially the inventory number this week.
Unfortunately oil is very erratic and it can sometimes need a very large stop and it is for sure a professionals market.
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I wouldn't suggest using futures unless you know what you're doing obviously but if you already know what you're doing then you already know oil is starting to move back up.
But in case you don't know… there's other ways to construct a position around an 80-day cycle.
Spreads are one.
… to reduce risk and to use volatility to your advantage
My trading plan is to wait for absorption at the open tomorrow thru wedensday. I will be trying to watch the tape and DOM to enter a futures position that could possibly last all day.
That's the plan, anyways.!!!
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