Trade of the week: short WTI crude oil
(Partial video transcript)
Previous trading outcomes
Axel Rudolph: Hello and welcome to this week's "Trade of the week" on Monday, the 4th of November 2024. About 2 or 3 weeks ago, we went short New York cotton front month futures. And as you can see here, we did so around 72.69. And currently, that trade is still on. We still have our stop loss above these previous highs going back to the end of September, around 75.58 and we still have our downside target in play around 68.50. So that trade is still ongoing.
And then what we did last week, we looked at Arabica coffee futures. And what we wanted to do is go long because we had an uptrend here. And we thought this was an ABC correction. That was really good support here. And we basically went long here, around 251.65, I believe, and had a stop loss down at 240.70, just below this low there. And as you can see, we just got stopped out on that trade. So we made a small loss on this trade here.
This week's trading opportunity
Which brings me to this week's "Trade of the week". And what I would like to do is look at crude oil futures. And you can see here WTI front month futures are heading back towards this key resistance area, going back to the beginning of June. And that, I believe, will act as resistance in the days ahead. So what I would like to do is sell against that resistance area here with the downside target back around the 67.00 area. So I need a stop loss just above these highs here, and also the low going back to the beginning of June.
This week's Trade of the week is to go short WTI crude oil futures, ideally at slightly higher levels around 71.00/71.50 or so with a stop loss at 72.50 and a downside target in the 67.00 region.