Prop firm news

Brent crude hit a 6-month high — the price is above any level since April

On the morning of October 20, Brent crude (the North Sea benchmark used to price most of the world's supply) updated its six-month high — the trading tape recorded the level at 10:26 Moscow time.

Brent crude hit a 6-month high — the price is above any level since April

What matters in 30 seconds

30 SEC
  • 01

    On the morning of October 20, Brent crude (the North Sea benchmark used to price most of the world's supply) updated its six-month high — the trading tape recorded the level at 10:26 Moscow time.

  • 02

    The key point in the phrase "6-month high": the current price is above any level since April.

  • 03

    That is, the entire summer and autumn range in which oil fluctuated for months has been broken upward.

  • 04

    Such breakouts are almost always accompanied by rising trading volume and an expanding daily range — meaning a standard stop calculated for a calm sideways market gets taken out much faster in such a market.

  • 05

    Oil drags along a whole chain: exporter currencies, oil and gas sector stocks, and inflation expectations, through which fuel feeds directly into CPI data.

Key point in the wording "a 6-month high": the current price is above any value since April. That is, the entire summer and autumn range, in which oil fluctuated for months, has been broken upward.

For a trader, this is a regime change in the instrument itself. When the market reaches a six-month extreme, there is no nearby history left above the price: all stop orders placed at the old upper boundaries have already been removed, and participants are only just beginning to set new reference points.

Such breakouts are almost always accompanied by rising trading volume and an expanding daily range - that is, a regular stop calculated for a calm sideways market gets taken out far faster in such a market.

Oil drags a whole chain along with it: the currencies of exporting countries, oil and gas sector stocks, and inflation expectations, through which fuel feeds directly into CPI data. That is why the move in Brent is read not only by those who trade the barrel itself.

Trade oil? Check where it's even available

A six-month high in Brent is exactly the kind of market that oil traders sit around waiting for for months. But oil is far from available in every prop program: in some it's on the list of instruments, in others there are only currencies and indices, and in others commodity trading is limited by sessions and position size. Such details are checked in the terms in advance, not when the barrel is already moving. Filtering by market and style immediately eliminates programs where the instrument you need simply isn't available.

FIND A CHALLENGE

REQUEST A PROMO CODE

Source: MarketTwits1 views
Brent crude hit a 6-month high — the price is above any level since April | PropMarketCap