As for gold, so for crude oil which contains to maintain a very bullish tone as I have been forecasting over recent posts for the commodity which is now set to take out the $85 per barrel level and move on towards the $90 per barrel region longer term. Here, I think it is worth considering both the daily and monthly charts, and if we start with the former, we can see the extent of buying support which continues to drive the price higher. As we can see both Wednesday and Thursday were significant as we press forward into the low volume node at the top of the chart. Note on both days, whilst there was a sustained move lower, on each day the buyers stepped in firmly with the big operators reversing these moves on high volume signaling their strongly bullish intent with both candles closing with deep wicks to the lower body. And whilst Thursday’s candle closed with a negative body, nevertheless, the intent was clear and confirmed on Friday which closed out the week with a solid up candle on good volume. This has also been reinforced in early trading at the start of the new week, with the price of oil moving firmly higher on a gapped-up open to trade at $84.68 per barrel at the time of writing.

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Moving to the monthly timeframe here we can see the key area on the chart. First, this month the solid up candle to date with good volume has thus far and more importantly taken out the resistance area of 2018 which saw the price plunge. Second, we are continually moving into areas of reduced volume on the VPOC histogram, making progress easier and more straightforward, with the longer-term target of $90 per barrel now clearly in view at the top of the histogram. Note also the strong buying which arrived in both July and August in this time frame with the deep wicks to the lower body and again, as on the daily charts, sending a strong signal of bullish intent to those traders who apply the volume price analysis methodology. 

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