Crude Oil Futures (CL) Analysis for Today

TradeCompass for January 20, 2025: Crude Oil Futures (CL) Analysis

Crude oil futures (CL) are currently trading at $77.14, with the following thresholds:

• Bullish Above: $77.54 – Signaling upside momentum if crossed.
• Bearish Below: $76.97 – Indicating a bearish stage if breached.

Why These Thresholds Matter

• Bullish Above $77.54:

  • This price is above today’s VWAP, the Value Area High, Friday’s POC, and Thursday’s Value Area Low. Clearing this level suggests a strong bullish move supported by institutional and algorithmic interest.

• Bearish Below $76.97:

  • Below this level, the price drops under the Value Area Low of today, as well as the Value Area Lows from the last three trading days. It also crosses below the second lower standard deviation of Friday and Thursday’s VWAP, signaling a deeper bearish stage.

Bullish Targets for Crude Oil Futures Today

1. $77.75

   • Just below Friday’s Value Area High, offering a quick profit target.

2. $78.00

   • Positioned under Thursday’s VWAP, a critical technical level.

3. $78.49

   • Just below the semi-round number $78.50 and the Value Area High of January 16th.

4. $78.68

   • Aligned with the POC from January 15th, marking significant institutional activity.

5. $79.34

   • Situated just below the January 15th Value Area High, providing an aspirational bullish target.

Bearish Targets for Crude Oil Futures Today

1. $76.73

   • Positioned above the VWAP of January 14th, a key bearish milestone.

2. $76.20

   • Just above the POC of January 14th, offering a critical support break.

3. $75.91

   • Above the Value Area High of January 10th, marking a bearish continuation target.

4. $75.26

   • Near the POC of January 10th, offering another key bearish profit level.

5. $74.51

   • Located above the January 10th Value Area Low, serving as a longer-term bearish target.

Key Notes for Today’s Crude Oil Futures Trading

1. Managing Round Numbers

• Expect price action to fluctuate around round numbers like $77.00, as market makers often use these levels to target liquidity. Stops placed too tightly near round numbers can be vulnerable to being triggered prematurely.

2. Partial Profit-Taking

• A core principle of the TradeCompass is to take partial profits at key levels. Locking in smaller gains over time statistically outperforms waiting for large moves that occur less frequently.

3. Stop-Loss Adjustment

• Once your first profit target is hit, move your stop-loss to the entry point. This applies to both long and short positions, protecting your capital while allowing the trade to run further.

4. Balanced Approach

• The simplicity and effectiveness of the TradeCompass lie in its neutrality. It starts as neither bullish nor bearish, adapting based on whether the price crosses above or below key thresholds. These levels are derived from technical maps used by institutional firms and trading algorithms, giving them greater significance in guiding price movements.

Summary for Crude Oil Futures Today, According to Our TradeCompass

• Bullish Above: $77.54 – Targeting $77.75, $78.00, $78.49, $78.68, and $79.34.
• Bearish Below: $76.97 – Targeting $76.73, $76.20, $75.91, $75.26, and $74.51.
• Adjust stop-losses to breakeven after hitting the first target and take partial profits along the way.

Conclusion

Crude oil futures are at a pivotal point, with key thresholds marking the start of a bullish or bearish stage. Traders should use this crude oil futures analysis as a guide to navigate today’s market, balancing risk and reward through partial profit-taking and dynamic trade management.

Trade wisely, and always trade at your own risk. Visit ForexLive.com for additional views.

This article was written by Itai Levitan at www.forexlive.com.