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.
Yesterday, I said that 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. And, we have to see if buyers come in. Buyers did come in and bid heating oil and gasoline higher, in fact, both markets closed up for the day.
Today, buyers are stepping into the crude oil market because of the strength in the products and the price of crude is testing the support zone on the daily chart.
The Constant Volume Bar chart of the crude oil is set to 1,000 contracts with the SnapTrader displayed. As this image was captured, the market was trading sideways, caught between the support zone and the resistance zone. The recent extreme RSI readings were closing above 62, which indicate upside momentum. Now, the RSI is forming a pivot lows above 38 and pivot highs below 62, which signals a trading range, but with a bullish 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 higher and the green buy volume line was dominating the red sell volume line of the TFVCrss study.
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.