VPOC reflects consolidation on daily oil chart

oil_vpoc_new_daily_chartFollowing my analysis of oil earlier this week, the most significant change has been in the move lower for the volume point of control on the daily chart, which reflects the increased transacted volumes at this price level, and the increasing likelihood of further price congestion in this region. The VPOC itself (the yellow line) has now settled at $45.60 per barrel defining the new point of price agreement. The other key level at present is the high volume node which sits in the $43.80 per barrel region, which to date has been tested and held three times this week and most recently in today’s price action.

From a fundamental perspective today’s oil inventories revealed a build in supply once again with the forecast of 0.9m bbls comfortably exceeded by 1.7m bbls. However, despite this, oil prices only moved marginally lower, and off the highs of the session, adding further to the prospect of a longer term accumulation phase developing with the VPOC at the centre.

By Anna Coulling – charts from Quantum Trading and Ninjatrader

About Anna 1055 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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