- The weekly chart gives us a significant development on the volume profile indicator.
- Price is in the process of breaking out of a resistance level.
- If bulls are not strong enough to continue pushing the price higher, a retracement to $78.53 is likely.
A quick look at the weekly chart shows that CL has found the point of control level for the volume profile indicator as support. The market surged through the POC initially a few weeks prior, retraced to test it, and bounced, now trading 5.7% above it. If you look at the chart below, the candlestick formations are very bullish once the POC was tested with a morning star pattern in the works for this week’s trading. It looks likely that we will see this week close well in the green, which means that our sentiment has shifted to bullish as we move forward. The break above the critical resistance level of $82.62 also gives bullish trades a higher probability of success.
The main feature we can focus on when it comes to the daily chart is the resistance level that CL appears to have already broken. This level is around $82.62. We can also join a trend line now, which may hold, but time will tell. The most important event bulls are waiting for is an official break of the resistance level. If it does not hold, and we see price retrace, then we can expect the market to find some support around $78.53.