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.
Here's a quick VWAP perspective what we are seeing with Crude Oil currently. Beginning with the monthly VWAP, we can see that the market is sitting on the monthly developing value low confluent with the current balance area low as well. The market is selling imbalanced since the market rejected the previous month's VAL close level. As the market got back into value again a rotational move back to the bracket high and developing value high is probable. Anyway, a break and testing lower prices is possible as well.
Moving forward to the weekly VWAP, we can cleary see a sell imbalance inside of the previous week's value close area. The market is trading around the weekly developing value low. We will see if a test of the previous VAL close level is possible today.
With looking at the intra-day VWAP, we can see a Globex open below the previous value close area. The developing value slope is somewhat to the upside and as the ON-Session got back into the previous VWAP value area. Currently we are trading below the developing value as well as the previous value close area. Let's see how the market will react to the DVAL here.
The Crude Oil Inventories will be out tomorrow because of Monday's holiday. This was only a brief look with the tool VWAP that we using in our daily trading to read and better understand the current market context. If you would like to learn more about our trading approach feel free to visit our trading community.
