🚨 Crude Oil Gap Trade Setup:
High-Volatility Open Ahead
Weekend geopolitical uncertainty around the Strait of Hormuz has reset oil sentiment after Friday’s 13% sell-off. With conflicting signals on supply risk, crude is positioned for a potential large gap at the 18:00 ET open.
This is a classic liquidity imbalance event, where weekend news forces aggressive repricing.
📊 Trade Scenarios
🔼 Bullish Gap (Risk Escalation)
Entry: Post-open breakout above initial spike high
SL: Below gap midpoint
TP: Prior resistance → extended geopolitical premium
🔽 Bearish Gap (Risk Relief)
Entry: Breakdown after opening spike fades
SL: Above opening high
TP: Friday lows → continuation downside
🧠 Key Idea
Expect stop hunts + fast volatility expansion before direction is confirmed.
This is a reaction trade, not prediction — wait for structure after the open.
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