Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Weakness In Oil Signalled With Volume In Recent Rally

Published 04/28/2020, 11:34 AM
Updated 07/09/2023, 06:31 AM
CL
-

Time to revisit the daily chart for oil, and as I forecasted last week, the recovery off the plunge lower looked weak, and we could expect a reversal. That has proved to be with the WTI contract once again moving towards single figures per barrel as the combination of weak demand and a lack of agreement on supply continues to weigh heavily.

And it was the volume that gave a clear signal of what to expect next with a rising price and falling volume with oil prices duly reversing on Monday with further losses today.

Also, note the weakness of the price action in the rally, which also confirmed the fragile nature of the recovery. So expect further weakness and consolidation in this area, until a political or economic catalyst appears.

Latest comments

It's up 80% at $18.  days later.
still a sell for 2  3 weeks
Excellent Job Anna
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.