WTI Crude Oil: Friday 23 July 2021

Crude remains classified in a “Sell the Rip” regime since the 7th of July and several dominant cycles into the summer of 2019 in WTI Crude Oil point to a possible beat in Sep/Oct 2021. This could line up with a period of weakness in stocks as outlined in the previous report.

Figure 1: Hydra Model Regime output for USO

Figure 2: Superposition of pre-July 2019 dominant cycles in Crude, extended into the post period

Should WTI find its way to 77/80, I will be looking at option trades to play a swift move to 57/62. Likewise, in the 57/62 range, I will be looking at bets for a run to the 90s.

Figure 3: WTI Crude Oil chart depicting 2 of many possible sample paths