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Crude Oil Volume Analysis

A long-undiscovered instrument that has been giving clear signs of downturn for a month now. I didn’t look into crude oil for a long time because I focused more on other investment values. But the situation is very interesting. From one picture you can see the volume that accompanies trading on the stock exchange, and from the other a purely technical analysis which also indicates a possible reversal of a long uptrend. Let’s focus on the first image with volume. The numbers indicate a situation where the number of contracts increased and decreased depending on the interest of buyers and sellers. Number one is a significant drop in price along with a minimum volume. This means that investors could not sell large amounts of “paper” because there was no other party to the deal. In such a situation, selling or realizing a small quantity profit can change the price by many dollars. Number two is an immediate increase in volume and an increase in price. You can see the appearance of the other party to the transaction. And in this situation, the most important number three. On the left, you can see an increase in volume with a further increase in price, and at the moment the opposite can be seen. Now we have another decline and an increase in volume, which is evidence of a reversal of the market situation.

Petroleum Technical Analysis

The technical analysis will be short, because the very assumptions of the dashes on the chart and levels are known to the people who read the entries. If not, I recommend our Technical Analysis department.

The first signal that could confuse 99% of investors earlier was the breakout of local support, i.e. a lower low. Previously, this situation resulted in a stoppage, but sellers were weaker. The second signal was the crossing of the trend line which showed a possible reversal. If we combine this with the volume, we have three confirmations of our theory. What can we expect now? In my opinion, further declines. The first place where the price can react is in the marked support line marked with a cross. But the psychological place will be the dotted line where the bigger bounce should occur. The level should be set with a margin of error of two dollars and not try to “catch the bottom” but wait for the reaction from the market.

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