In today’s Hawkeye update, I talk about how crude oil prices continue to fall. Using volume of course, I show how and why oil is slipping in price, and what my expectations are for future price.
From the charts
Using the daily crude oil futures (CL) chart, the line-in-the-sand we drew on Monday was tested, and failed to hold, with CL prices breaking below the psychological $50 support. As of today, it is trading at $47. Volume showed that buying pressure was below average, but selling pressure was consistently above average. This was confirmed by the weekly and monthly charts as well.
Our expectations for future price are based on Hawkeye Zones. We expect price to stall around $46, but continue to fall to longer term support around the $44.60 area.
The Hawkeye Perspective
While crude oil prices continue to fall, we will be watching the volume for clues on any consolidation, or reversal signals. Volume will let us know what the future price direction will be. Learn to trade the Hawkeye way.
Join Randy in the next free LIVE Hawkeye Demonstration Room held every Wednesday at 9.30am EST US. You will learn more about volume and volume price analysis and see more examples and live trade setups. It is open to all.
Learn to trade the Hawkeye way.