Current trade overview: long US crude oil

This week’s trade focuses on a long opportunity in US crude oil, as the market continues to hold firm at key support levels. Price action has stabilised near $64.40, setting up the potential for a rebound toward recent highs.

Trade setup

• Entry point: supported at $64.40 a barrel
• Stop loss: is set just below the support level at $63.97 to allow for market fluctuations
• Target: $68.00 a barrel, with the possibility of further gains depending on market sentiment.

Risk-reward ratio

The risk-reward ratio for this trade takes into account the broader stop loss placement and the potential movement to $68.00 a barrel and beyond, aiming for a favourable outcome.

Market context

Crude oil markets have been consolidating within an upward-sloping structure since early June, with buyers stepping in consistently around $64.40. While resistance near $68.00 has limited upside so far, there is growing potential for a breakout if risk sentiment improves or supportive inventory data emerges.

The setup benefits from clearly defined technical levels and a constructive market backdrop. If optimism returns to the energy space, crude oil could resume its broader recovery trend.

Cautionary note: while this trade presents a structured opportunity, market conditions can change rapidly. Traders are advised to consider their risk tolerance and market outlook before engaging in this trade.
Source: IG