Thursday, October 23, 2014

Crude Oil Top Down Market Analysis

All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.

Yesterday we took a look into the higher time frame charts from the S&P 500 Cash Market. Today we will inspect some big picture charts on Crude Oil.

On the monthly bars chart we can identify a one time framing lower market that occurs since three months. Also, last month's low got taken out from the current month. With the Price Retracement tool we can highlight a potential support area at the 50% level. Let's keep an eye on that if we moving lower.

The weekly chart showing us a more indepth market insight. Obviously we are one time framing lower here as well. The current week could end up as a inside bar but let's see what will happen on the last day of this week tomorrow. Also, it looks like the market found some support at the area we marked.

Moving forward to the daily bar chart we can see a bracket that means the market finding balance in this area here. The one time framing on this chart period ended with a outside bar. Today we opened below that bracket but well below 5EMA so, the probability for a rotation back to this weeks average was high.

Now to the last chart of this quick top down analysis, the 240 minutes chart. The market found support at the marked area and it looks like a double bottom now. Anyway, let's see what will happen at this trendline we drawn there. Currently it shows some resistance but we'll see.

We hope you enjoyed this post. Sometimes it is very important to keep things simple to better understand the market environment without to use complex indicators and tools. You can learn more about our analysis process with tools such as the VWAP we employ at The Private Banker with an elite or premium membership on our trading community.

The Private Banker, Co-Founder