Commodity trading idea: Oil price defends support
The speculation on a turnaround in the oil price worked out in the first step. Despite all concerns about weaker demand in the wake of the looming recession. This now opens up new options for traders willing to take risks. Oil price (Brent) 88.05 -0.91%
Was it hopes of OPEC reducing oil production, was it falling inventories in the US and just typical investor behavior on key chart technical brands? Ultimately, traders with Oil Profit trading App care why the price of the North Sea Brent oil at the support zone at 86/87 US dollars (intermediate high from 2018 and 2021) made a classic false breakout and turned up again. Compared to the middle of the week, the currency -hedged Unlimited Turbo Call (Mini) on Brent Oil (WKN: SH5F35) from Societe Generale , which was presented as a possible vehicle for a speculative long trade, rose by around 50 percent due to this short-term change in direction.
In order to expand the profits, the next step should now be to break the first smaller downward trend in the chart. On the other hand, it is even more important that the correction low at around $83.60 is no longer significantly undershot. Against this background, a (trailing) stop price below this low could be a useful way of hedging both for current and for possible new long positions. The leverage of the bill is currently 6.0.
Product idea: Best Unlimited Turbo Call (Mini)
Underlying: Brent Oil (current price: $89.40)
Issuer Societe Generale
ISIN/WKN DE000SH5F356 / SH5F35
Term Open End
Currency hedging: Yes
Current price: 14.82 / 14.84 Euro (9/30/22 11:10 am)
Current Strike: $73.438 Current
Knockout Level: $75.680 Current
Potential Stop Loss: $9.50 (in appearance)