The question everyone is asking is where is the oil price heading next in the medium term, and for a possible answer, we need to move away from the intraday oscillations of the daily chart, to the weekly chart which is more revealing. And if we start with the technical picture, there are several signals to suggest we are likely to see a pause and consolidation in the current price area. The first of these signals arrived two weeks ago with the narrow spread up candle on high volume, and the key here is to consider this volume when compared to that of the previous week which saw the price of oil close with a wide spread up candle, and only marginally lower volume than the week which followed. So to put this into Wyckoffian language, effort and result on candle 2 are in disagreement, whilst […]