There is a lot going on in the raw materials market if we look at the energy values. Everyone can see for themselves what is happening on the gas. The position and profits of a large player that accounts for a large part of the market demand are counted in billions of dollars. We now focus on crude oil, thanks to which we have a lot to drive our cars on.
As we can see on the chart, we had a volume jump. The first one appeared during the European session, which does not happen often, and here the impulse was the information that Russia ended the exercises. A good start for the US session to deepen the trough on the turnover, standard for the day. I have marked what the chart should look like with the indication of the “formation” on the chart, and thus the behavior on the volume. The level is arbitrary and does not necessarily have to be exact. One is a decline that has already occurred, it occurs together with an increased volume. Two is the growth we are waiting for, and here I expect the volume to be smaller. Until finally the end of place number two and the beginning of another decline, it would be nice to see all orders buying and not even being able to break the price level with ever increasing volume. This situation immediately shows that someone buys everything that is put on the market and at the first opportunity for a drop in price, you can join the falling train.
This is a downside scenario. If the conditions are not met and the market situation changes, it is better to wait if the plan still has any chance of success.