The current CL contract is trading in the Volume Area range of 91.2 to 92.75 — this means there are factors that give crude oil buyers greater confidence.
If buyer activity remains the same, the price will very soon reach the volume resistance level of 94.4 to 94.55. All levels are marked on the chart.
The volume-weighted average price (VWAP — Volume Weighted Average Price) is 91.5.
Use this price as the dividing line:
- If the price trades above this level, buyers control the market.
- If the price moves below this level, sellers are in control.
Support levels are concentrated closer to the lower deviation band of the VWAP indicator:
- 87.2 to 87.36
- 87.7 to 88
On the chart below, you can see buyers aggressively buying and creating a demand imbalance that pushes the price higher. This can be observed in real time and used in your trading practice.
