WTI Crude Daily 05May

Monday’s Auction
As noted in Mon’s analysis, the focus into Tue’s auction on developing Balance, 59.70s-58.50s, and the Unsecured High, 59.80s, was key as buying interest drove price higher toward the Daily 1st Std Dev High as the Unsecured High failed and the Structural Gap Higher open led to higher prices. Focus into Wed’s auction on response to Tue’s Upper Trade Cluster, 60.10s-61.10s.    

 

Monday’s NY b shape Structure

Despite conventional thinking regarding b shapes implying potential for price discovery lower, downside potential is much less asymmetric, based on the market generated data. Our clients were alerted to this fact via our Structural Signal Database into the London auction, helping inform thinking about potential price discovery higher. 

 

Tuesday’s Gap Higher Open
As price discovery higher unfolded during Globex, the potential for a Gap Higher open became apparent ahead of the NY open. In such instances, There is an asymmetric potential for continues price discovery higher, based on the market generated data. Our clients were alerted to this fact into the NY open via our Structural Signal Database. 


Tuesday’s Micro-Blog Excerpt
As noted during Tue’s NY auction
(highlighted in yellow)

  • The failure of the Gap Higher open to fill early implied the potential for price discovery higher. 
  • Initiative buy programs (IBP) entered at/near 60.70s-60.75s. 
  • Price discovery higher developed toward 61.10s, near our Daily 1st Std Dev High. 
Tuesday’s Auction

WTI Crude Daily 04May

Friday’s Auction

via The Daily 

As noted in Fri’s analysis, focus into Mon’s auction on response to the Breakout Area, 58.20s-58.60s, was key as buying interest entered there during both Globex and NY auctions as rotational trade developed within the context of sideways Value. Focus into Tue’s auction on developing Balance and the current unsecured high.    

Monday’s Micro-Blog Excerpt
As noted during Mon’s auction
(highlighted in yellow)

  • Following initiative sell programs (ISP) at/near 58.70s-58.65s, the expectation was for price discovery lower. 
  • Key downside reference levels included Fri’s Low, 58.32s.
  • Following poor sellside facilitation lower, responsive buy programs (RBP) entered at/near 58.50s as the Sellside became short in the hole, implying the potential for short covering inventory adjustment.
  • Ultimately, price discovery higher unfolded toward 59.10s as the understanding of structural development of the market provided the insight to adjust expectation as new market inputs develop.

Monday’s Auction