NYMEX Crude Oil, Heating Oil and RBOB Gasoline Traded on Globex
The CQG Analog Chart, which is a chart display that plots multiple markets, has crude oil (blue bars), gasoline (light green close only line), and heating oil (white close only line) plotted. In addition, I have the RSI study plotted for each market using the same colors as the prices.
The RSI readings for crude oil, gasoline, and heating oil are all peaking above 62, which indicates an uptrend status for all three markets. At this point, crude is trading into a support zone. We have to see if buyers come in.
Sellers are continuing to press the markets lower and the crude oil market is testing the support zone. One positive sign is the volume is not picking up during this pullback. Also, this is the third lower low on the daily chart, and that often is the completion of a short-term trend.
The Constant Volume Bar chart of the crude oil is set to 1,000 contracts with the SnapTrader. As this image was captured, the market was testing a support zone. The recent extreme RSI readings were closing below 38, which indicate downside momentum. Now, the RSI is forming a pivot low above 38, which signals a trading range, but with a bearish bias.
The short-term view is the TradeFlow Chart, and my two studies, which are set to five TradeFlow bars, with the ChartTrader attached. When this image was captured, the price action was moving sideways and the red sell volume line was tracking the green buy volume line of the TFVCrss study. That indicates a two-way market.
I have noticed that once a wave of selling or buying occurs in crude with a peak in the green buy volume line or the red sell volume line of the TFVCrss study using the TradeFlow view, the market tends to reverse, as compared to simply consolidating and then continuing.
The TradeFlow view can change in an instant.