Long March 10 WTI Oil, 5/10/10

Trade Description

Long Mar 10 WTI from 8227.4 with stop at 8157.2. Bought on a limit order initiated the same morning.

Technicals
Oil is in an up-trend within its recent trading range. Break above $80 in the front-month contract may provide a trading opportunity.

Fundamentals
Cold weather in the US is driving the price higher.

Stop Position
8157.2. Loss-to-stop = 25bps. Placed stop relatively wide.

Entry Checklist

Are you trading against the trend? No
Is there a fundamental story? Yes
Is there a technical buying opportunity? Yes
Is the trade likely to be correlated with other live trades? Yes — general recovery story. Risk not excessive.
Are you placing your stop at a point where the market would tell you you were wrong? Yes
How much conviction do you have? Med
Does the risk accord with the conviction? Yes
Do you have a plan? No — see what develops
If you are wrong, will you live to fight another day? Yes

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