CL – Day timeframe: res/sup

Every speculator’s strategy is the same – “Buy low, sell high”.

A barrel of oil was $10 cheaper – a great opportunity for speculation.
From Monday to Friday, session after session the price fell, keeping its rhythm 2 productive days, then unloading and again.

Let’s analyze the delta trend from January 23 to February 3
(lower histogram shows the total delta and % of imbalance for the day].

On the 23rd of January the volume activity of the sellers exceeded the activity of the buyers by 2500 contracts. 2-2.5k and the total imbalance by delta, I mean timeframe of the day, is sufficient to maintain a unidirectional trend.

Also note the red dots are BIG TRADES of sellers. And look at what other day there is such activity. If it’s January 30, that’s right.
The resistance levels that are marked in red on the chart should have told you which days to pay attention to first.

Also pay attention to the dynamics of the total delta from the 23rd. Quite right.
The rising imbalance to maintain the trend is an integral part and a sign that the trend is being controlled by the big oil traders, the banks.

If you doubt that, then compare the volume activity profile on the 27th of January, the 1st and the 3rd of February. These 3 trading sessions worked in the same pattern of “2 cores” and closed at the minimum. Still have doubts?

Under each trading day profile you will find a number – it is a Range.
We have now figured out that the price declines are artificial.
The slide for the week, a heat map of oil stocks, also confirms that the decline has been clearly rehearsed and was led by the big stock traders.

A little brainstorming and exercise for you.
Write in the comments, the answer to a question like this:

How can you tell from the heat map of oil stocks that last week’s price decline was artificial?

But it is impossible to keep everyone in the market fooled all the time and now pay attention to the total delta at the end of the week.

On the 2nd the buying and selling are in balance, as indicated by the near zero delta. I was not in the stock pit at that moment, but my experience tells me, that on the 2nd they started to dump dashing sales, and on the 3rd the sellers finally went in the shadows.

According to this activity we can see the support level marked on the slide.
Profitable decisions and success in everything.

VolFix Company
author & trader: Mikhail Lemah