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How to Trade Crude Oil Using Technical Analysis: A Guide

by | Mar 18, 2022

Do you have any idea what the most important macroeconomic chart in the world right now is? And I do mean right now, as in March 2022… It changes because things are cyclical, but there’s always one asset class/financial instrument the entire financial market  hones in on. Six months ago, it would have been the 10-Year Treasury bond and interest rates. But right now, the No. 1 asset that everyone is watching is oil — and I want to dive into how to trade crude oil using technical analysis.

I’m not surprised at how hyper-focused investors are on crude. It happens a lot during times of conflict and war — if you were trading during the Iraq war, then you know what I’m talking about.

So when Russia invaded Ukraine, it came front and center once again… But the beauty of oil is it’s one of the most technically traded instruments on Wall Street.

And it’s time to take advantage of it.

How to Trade Crude Oil Using Technical Analysis During the Russia-Ukraine Conflict

The fundamental case for oil is it usually acts like a huge tank that’s hard and slow and turn. And by that, I mean the current situation of crude oil won’t be quick to change, and we can trade it using technical analysis.

For instance, at the moment, oil is experiencing a shortage and inventory problems across the globe, pushing gas prices higher. This will remain the case for this asset for months — perhaps even years. 

But what happens to oil in the short term — because of the fact that the fundamental base of oil stays the same for the most part — it becomes technical to trade.

And to understand the technical aspect of trading oil, you have to understand how to trade it the right way, and how stocks react to it. 

For one, the markets don’t like big rips in oil. 

Once you’re able to master that, you can begin predicting where crude oil will move two weeks in advance… like I did. 

Watch the video below to learn more about how to trade crude oil using technical analysis, and the oil stocks I’m trading right now.

And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel

P.S. One of the best ways to avoid Wall Street screwing us over is by following where the money is flowing…

The market is like this big ocean with several different currents flowing through it at all times. But one of the strongest currents is the money that flows from large funds into the market on a monthly basis. 

Hedge funds aren’t always the most creative entities on Wall Street — they’re all trying to get into the same stocks in the S&P 500, Nasdaq or Russell 2000. That means they tend to cluster into the same best-performing names…

Names like the ones I’m looking at right now.

Access the Trades Here

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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