Do you think that gas stations are expensive now? Get ready that it will be even more expensive.
You wonder why the oil goes up all the time with virtually no stoppage? Such a question is asked by many investors who saw further increases even after the previous worse data. Now let’s think about people who “grid”, that is, someone who adds another position to already lost ones in the opposite direction in the hope that the price will turn back. More than one account deletion has already happened along the way. That is why I am a supporter of joining trends, and not playing in the counter, hoping that it may work.
Currently, today we are waiting for the data expected to reduce oil inventories, which should have a further positive impact on the asset. Unfortunately, at a time when macroeconomic data is one thing, and investors’ movement on the market is another, it’s a completely different story and the transaction should be concluded mainly based on the chart.
Two charts below. One of the H1 interval that shows the current volume situation. As you can see, the turnover is variable and although you can see a downward trend, large movements result in increased contracts turnover. It is obvious that we do not go short until there is a signal from the market. Unfortunately, with such a strong trend, it will be significantly delayed and entering the position may turn out to be too risky.
Second weekly chart. I showed a range that is realistic in the current market conditions, and the resistance level is quite strong and important as the price has reacted many times before and ultimately did not break the level.