WTI Crude Oil - Case Study

 (Published on 17 July 2016, Re-published on 18 July 2016)

I have been following crude oil price for some time. However, recent price action got my full attention.

Here is a chart example of West Texas Intermediate (WTI) Crude Oil.

On 16 Jun 2016, the price broke below the S-Trader Pivot Support but the price action did not move downward aggressively as some of the indicators as noted below did not show heavy selling pressure in much action.

1) S-Trader Volumetric - relatively below Average volume.
2) S-Trader Smart Money Index - Positive (Green bar), big boys are still supporting the market. But, there is sign of declining support.
3) S-Trader Multi Months High Low - 1-month Low triggered.

Similar situation occurred on 27 Jun except this time S-Trader Volumetric showed relatively Average volume.

On 7 Jul, it had a similar outcome with 27 Jun except S-Trader Smart Money Index at lowest positive side as compare to 2 previous events. 

The following day 8 Jul and onwards Smart Money Index showed the big boys has moved toward the negative side (Red bar) while price action on side way.

Going forward, its quite interesting to watch the price direction.

In fact, the situation has becomes more exciting with some of the following news been published.

5 July 2016 - "Chevron Bets $37 Billion on Expansion as Oil Rises, Costs Fall" 

7 July 2016 - "Big Oil's $45 Billion of New Projects Signal Spending Revival"

12 July 2016 - "OPEC Producer Sees Oil at $60 Until 2018 With Demand Picking Up"

15 July 2016 - "Faltering Oil Recovery Prompts Warnings of a Relapse to $40" 



Chart Source :
1) Metastock