Trade of the week: long US crude oil
US crude continues to find support above $64.00, so this week's trade is to go long, with a stop at $63.97, and an initial target at $68.00.
(Partial video transcript)
This week's trading opportunity
Chris Beauchamp: Hello and welcome to "Trade of the week". It is me again, Chris Beauchamp. Axel Rudolph is still on holiday. Lucky him.
We're going to look this week at our "Trade of the week" for the week beginning Monday 28th July, which is to go long crude oil. We’re going to look at crude oil, which has seen a lot of support, if we zoom right in on the chart we can see, over the last month or so, a lot of support down here around the $64.40 level. While it has seen some limited upside, up towards $68.00 a barrel, I think we're looking to see if we can get another bounce of support in this zone and push on, and maybe that will turn into something more substantial.
For our stop, we are going to give it some room, so we're going to put our stop down here at $63.97. So, a bit of a wide one on here. But the hope is that we will get at least a move towards $68.00 a barrel and maybe even something a bit more substantial, maybe as some optimism comes through in terms of crude oil. So that's the Trade the week - long US crude oil.
Previous week's trading outcomes
To look back to last week's trade, a mixed bag on this one, I'm afraid. It started off well - we were going short USD/JPY. We did get down to ¥146.00 by Thursday's lows, but after that Trump-Powell drama on Thursday and Friday, we've seen a continued recovery in the US dollar. Of course, we’ve not hit our stop yet, so we'll see whether it continues.
So, you could argue maybe the rationale is still in place. You could opt to leave it. Or you might argue that maybe, since it's bounced back to essentially to where we were a week ago, that the trade hasn't quite worked out. But maybe you can leave that one to run for the time being. So that's our USD/JPY trade; still in effect, although we've seen much of our profit eroded by the recent bounce, in the pair.
This week's trade in summary
Just to reiterate: our "Trade the week" for this week is to go long US crude oil, with our stop at $63.97.
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