Weakness in oil signaled with volume in the recent rally

Daily oil chartTime to revisit the daily chart for oil, and as I forecast last week, the recovery off the plunge lower looked weak, and we could expect a reversal, and so it 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 which 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. Note also 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.

By Anna Coulling

Charts from NinjaTrader and indicators from Quantum Trading

About Anna 2016 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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