WTI Crude: Tomorrrow’s Levels, Today. 19Feb

Our daily TPO profile graphic for 19Feb.
This graph shows the key structural formation
of the Buy Spike, 95.95s-96.70s, into the 19Feb close. 

Spike rules dictate that should one edge of the Spike hold as resistance/support, then the inventory imbalance creates high degree of probability of revisting the other edge of the Spike Range with potential for continuation in that direction. 

This condition manifested in a substantial way as the Spike High held as resistance, trading to Spike Low,  continuing lower, ultimately breaking down below the major structural support at 95s, adjusting inventory down to 94s before reaching a stopping point. 

Knowledge of this Spike, along with the significance of a structural support breakdown, provided the insight into most favorable positioning, in this case sellside. 



Our daily statistical study plotting both the key reference levels & price action for 19Feb, noting the Buy Spike, as well as projected statistical levels for 20Feb. 

The graph shows our daily statistical expectations for 20Feb: (95.48, 95.05, 94.62 as potential support levels) as well as inferential analysis for 20Feb. 

Result?…


The market challenged the Spike High, probing above toward 97s. The buyside failed there, creating inventory imbalance, resulting in the sellside auction, which accelerated on the structural breakdown at 95s. 

Regardless of the widely speculated cause/(s) and despite the rhetorical sound & fury, knowledge of the structural development and statistical levels provided necessary context and appropriate course of action for the informed participant.

Knowledge of the structural significance of the Buy Spike at Tue’s close, coupled with the significance of a breakdown at 95s informed the participant about the proper strategy (short positions in this case), eliminating the asymmetric risk (long positions in this case), AND the proper expectations (price discovery into Jan cluster, 94.40s-92.40s & daily statistical levels) based on the market generated data, not opinion. 

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WTI Crude: Daily TPO & Price. 22Feb




Overnight:

As of 730 CST, 
the market has balanced within
yesterday’s cluster, 92.60s-93.30s
as the market trades around the 
Jan cluster’s POC, 93.10s, here

Stopping point at/near 92.75s now in place. 
Potential for balance from 92.75s-94.70s.
Otherwise, IF 92.75s fail, potential price discovery lower toward major structural support at/near 91.50s.