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I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.
Crude oil futures closed up today, Jan. 20, pushing above the 200-day moving average. Demand for crude oil is growing. In China, refinery throughput for oil rose 4.1% in 2025, averaging a record-high 14.75 million barrels per day. China’s economy is growing. Its Gross Domestic Product (GDP) will hit the target of 5%, said Chinese President Xi Jinping in his 2026 New Year message. Geopolitical tensions in the world may have an effect as well.
This chart pattern, which pushes above the 200-day average, is interesting because, in my opinion it’s a bellwether for all markets and crude oil is going to trade higher. The fundamentals and technicals are coming together.
An option strategy is to sell March 2026 crude oil 59 put for 1.80 ($1,800). These options expire February 17, 2026. Notice the strong support at 59 and 58 on the chart below. In my opinion, If crude oil went down to those levels, it will bounce back higher.
To discuss trading strategies, contact me anytime. Have an excellent day and healthy, prosperous new year.
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
