Instaforex Analysis

[InstaForex Gertrude]

Why didn't the oil go upwards? Volume analysis for oil

Good evening, dear traders! Yesterday, we gave a trading idea for the growth of oil but paid attention to the evening news on oil reserves in the United States. Let's analyze this situation on volumes.

During the time of the opening of Europe, the price immediately went up and while it is on the way to the maximum of 58.74, there was another extremum - 58.56. At the breakdown of which, there was practically no doubt about the further increase in price. Looking at the chart, even the trend line up indicates purchases. However, It is very important that all this happened in the middle of the European session and before the release of the weekly news on Oil Reserves for about another 5 hours. That is, everyone only sees purchases.

At the time of the opening of the American session, there was also no increase in prices. Although the upward trend still remained, which added confidence in the growth.

In addition, at the time of the news release, summing up all mentioned above, the state of the price was such that all liquidity was not up, but, on the contrary, at the bottom with the nearest targets 58.13 and the American session of the previous day which is 57.76.

Oil's approach to the maximum in Europe:

Thus, the Europeans simply didn't have the courage to collect stocks before the reserves. Nevertheless, the stocks themselves came out large, which led to the sales of black gold.

This analysis is based on the US oil futures.

Analysis are provided by InstaForex

[IFX Yvonne]

Important intraday Level For EUR/USD, December 02,2019



When the European market opens, such economic data as Final Manufacturing PMI, German Final Manufacturing PMI, Italian Manufacturing PMI, French Final Manufacturing PMI, and Spanish Manufacturing PMI will be unveiled. The US will publish such eocnomic reports as ISM Manufacturing Prices, Construction Spending m/m, ISM Manufacturing PMI, and Final Manufacturing PMI.So, amid the reports, EUR/USD will move in a low to medium volatility during this day.

TODAY'S TECHNICAL LEVEL:

Breakout BUY Level: 1.1073.

Strong Resistance: 1.1067.

Original Resistance: 1.1056.

Inner Sell Area: 1.1045.

Target Inner Area: 1.1019.

Inner Buy Area: 1.0993.

Original Support: 1.0982.

Strong Support: 1.0971.

Breakout SELL Level: 1.0965.


(Disclaimer) *The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.