Trade of the week: short WTI
Given last week's uptrend line break, we would like to short WTI on a bounce back to $63.50 with a stop loss above the late January peak at $66.31 and a downside target at $60.30.
(Partial video transcript)
This week's trading opportunity
Hello and welcome to this week's "Trade of the week" on Monday the 16th of February 2026. What I would like to do today is to go short the US West Texas Intermediate (WTI) crude oil price.
The reason being technically that we have broken through a support line that we can draw on our charts since the beginning of January. And basically on Thursday of last week, we fell through there and we closed below it. And since then we've been trading sideways. Now, I don't want to go short at the current levels because quite often what happens is you get a retest of that breached support line which now, because of inverse polarity, becomes a resistance lin. And also if we were to bounce back slightly, that would be more or less around the halfway point of this bearish Marubozu pattern, which quite often also acts as resistance, so the halfway point of the candle I point out on the chart at 1:01 in the video.
So, we would probably want to go short around $63.50 and our downside target would be probably be just above the psychological $60 area here, with the support area was sort of maybe at $60.30 or so.
Previous week's trading outcome
I would now like to talk about is last week's "Trade of the week", which was to go long AUD/USD. And unfortunately here, I was waiting also for a minor retracement to get into the trade. We didn't quite get it. We got to within 15 points of my entry level, which is just below the psychological $0.7000 mark, and my upside target was $0.7145 which got hit - as you can see here on the chart at 1:50 in the video - we went up to $0.7143 on the 11th of February 2026, and then on the 12th, we hit $0.7147. But unfortunately because I didn't manage to get into this one on this trendline break here, that one didn't get triggered.
This week's trade in summary
This week's "Trade of the week" is to go short WTI light crude oil, and do so on a bounce back to $63.50 with a stop loss above the late January peak at $66.31 and a downside target at $60.30.
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