Today is Wednesday the 7th of January and as I sit and wait for the EIA inventories report, I thought I would quickly share some higher time frame charts that I'm looking at for Crude Oil.
First, I want to show what the yearly bars are looking like with potential support and resistance levels.
Next, if we look at a chart with the weekly bars, we can see that the market is making its way down to the previous support/balance area of the 2008-2009 low. This will need to be watched closely as it could be supportive.
I also use a proprietary volatility measurement again on a higher time frame. We can see that this move has gone from one extreme to the other. The current area where we are may be supportive.
The last chart I will show is that of the USD. This is the problem in seeing any bid in the energy markets. A strong USD will have pricing pressure on the energy markets. The 92 area is a key level to watch here. A breakout of this could send prices way into the 100s.
This is what I'm watching on a higher time frame and I'll keep this updated as material events occur.
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