Market Leader informed
Yesterday, on Nov 17th 2010, at NYMEX the price on Light Sweet Crude Oil (the December futures contract) declined down to $80.44 per barrel while at ICE (InterContinental Exchange Futures) Brent Crude Oil lost in value as well. Its price fell down to $83.28 per barrel.
Mass media instantly reacted with a lot of explanations, including investors’ fears that hydrocarbonic fuels might become unclaimed in the future.
According to the Department of studying Masterforex-V trading system , such version is the least probable one if consider the economic growth in Asian states, first of all in China, which makes their demand for oil and gas constantly grow.
On the Weekly chart of the Light Sweet Crude Oil (CL) futures the price is “in the hands” of the price bar with the biggest volume cluster in 1.5 years. We can see a downward rebound from the high of the bar.
The pace of the decline on the Weekly chart is lowering. Today’s trading sessions indicate up-bars with trading volumes below the average. However the American session isn’t over yet. So there is a possibility of consolidation within the $81 – 82,5 area. An upswing from the area, if confirmed by big volume, will prompt purchases with the closest objective at $88. A price fall below $81 with a further decline down to the $74,5 – 76,5 area will signify only the deepening of the retracement, not a trend reversal.
In general, the whole situation about the decline of the crude oil prices resembles rather the trading activity of some major operator, who wants to buy up some assets at a more favorable price during the uptrend, than investors’ fears of losing their profits at the so-called market overheating.
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