Wednesday, December 6, 2017

Short Trade Higher Rejection Inventory Report

Today was inventory day for crude oil so we usually wait for the outcome of the report to respond to the market. At first, I thought we were going to see the market drop early before the report in which we would probably see an inventory rally.

Not what happened. The market from the US open decided to continue to reject the 57.00 volume node area. The inventory initial move was to the upside only to get rejected at this same price level again.

Both trades were called for 56.83 short, with the first trade basically two minutes after the report was out. As you may know, the volatility and uncertainty are high at this time. Therefore when I saw the spike in bid action I got spooked to call the exit of the first trade for a -1 tick loss.

Immediately after I thought I was wrong as the trade begun to move in favor but it caught another bid only this time it rejected the same price level above to give an even more confident short at 56.83 this time moving +50 ticks.