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.
Welcome to a quick educational Macro Top Down Market Analysis on Brent Crude Oil from the yearly bars zoomed in to the monthly bars. The Top Down perspective is very important to understand the overall market context. The market is telling a story and you have to be able to read this with various timeframes and tools.
Let's starting with the yearly macro chart. Currently we trading outside of this balance zone that occurs since three years. Also, the low from two years ago got taken out. The bar from two years ago was a ouside bar and gave us the first heads up for a potential change in market context.
Moving forward to the quaterly bars we can obtain some more zoomed in informations. The market is trading below the bracket zone now and is not an inside bar anymore (orange shadow). We are heading towards to the next marked potential support are on this timeframe.
To mention is also the break out of this quaterly wedge here:
Next is the monthly bars chart. We can observe a five months one-time-framing lower market. Marked on this chart is a potential support area confluent with the 61.8% fibonacci retracement level. Overall this market is very bearish rated with the informations so far.
Anyway, we will take one more quick look at a weekly bars chart with installed EMAs. We are one-time-framing lower since several weeks here and the 5EMA is been successful rejected. So the short-term-trend with the 5, 10 and 20 EMA is intact as well as the long-term trend with the 50 and 100 EMA.
You can see how much market generated informations we can get out of plain market charts. We could now move forward to analyze the market with various tools like VWAP, TPO profiles or price channels to better understand the overall market story as well as moving and touching base on smaller time frames to identify some potential trade opportunities combined with a strategical risk management. You can learn more about all this in our trading education.
Enjoy your success!
