Due to the jack of all trades nature of my role, I didn’t manage to get my forex daily market update blog published yesterday. As a result, here it is today!
If you haven’t noticed when you’ve gone to fill up your car at the local petrol station, petrol is cheap! Since we featured the following daily resistance zone, a lot has changed.
So let’s take another look at oil:
Oil Daily:
As I’m sure you’re aware, each market essentially has its own different personality when it comes to the way that price moves between support and resistance levels. When commodities markets like oil trend, they tend to REALLY trend. Just take a look at that last little down leg (I say little in the context of the daily chart, but there’s 2 months worth of candles in there) and you can see what I mean.
I’ve then zoomed into an intraday chart, which is in this case an hourly, to highlight the trending nature of the market. The chart looks a bit boring zoomed out as far as I have, but I needed to do this so I could show the entire move down from where price last rejected down out of the higher time frame resistance zone.
Oil Hourly:
If you’re a forex trading textbook manufacturer, you’re free to use this chart to highlight how price moves between levels in a perfect down trend. Here you can clearly see how short term support forms, short term support breaks and short term support is finally retested as resistance. Rinse then repeat as many times as necessary.
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