Momentum Day Trade

Short Crude Oil

3rd August 2015

Longer Term Technical Analysis

• Price is below 200 day moving average

• Price is below 20 day moving average

• Crude Oil is witnessing volatility contraction with 5day ATR < 20day ATR

Short Term Technical Analysis

Intra Day Fundamentals

• Iran and six world powers reached a long-awaited nuclear deal in July that would end sanctions on Tehran in exchange for curbs on the country's disputed nuclear program. Iran reportedly hoards 30 million barrels of oil in its reserves ready for export.

• The official China's manufacturing purchasing managers' index published on Saturday dipped to 50.0 last month from 50.2 in June, as new orders declined.

• China is the world’s second-largest oil consuming nation and manufacturing numbers are used as indicators for fuel demand growth.

Intra Day Technical Analysis

Trade Management

• I offered one contract at 3000 with 3 tick stop at 3003

• Initially I had offered it at 3010 but due to my account being relatively new I had to finish few formalities before I could actually place an order

• I bid myself out at 2984

Intuition

• No

Review

• It was one good trade

• I was patient to offer liquidity which boosted my ratios

• This trade yielded 5x reward for 1x risk

• I held this trade for approximate 120 minutes