 Hello and welcome to the chart of the week video with me David Madden. Today's date is Wednesday the 1st of May 2019 and the time has just gone 901 for the summer time. This week's chart of the week is WTI West Texas Intermediate, the old contract and starting off with the wider view, we can see that WTI has been a solid upward trend, a series of higher highs and higher lows since late December, excuse me, and we can see here that the WTI actually hit its highest level since late October only last week, so we're not too far away from multi-month highs. There's been a combination of factors which has driven the oil market attire. US and China trade talks have been improving. There's been some evidence to suggest that the Chinese economy is in better shape now than it was at the back end of last year and has also been OPEC supply cuts have been adding to the upward move in the oil market. Now it is worth noting, we did see a very sharp sell-off in the oil market last Friday, this red candle here, when President Trump announced that he was in contact with OPEC and he essentially requested that OPEC take pressure off the energy prices and President Trump, from time to time, is known for talking about oil prices lower whereby he gets in contact with OPEC and his allies in OPEC often look to to appease the President, but that being said, only in the last 24 hours, before from Saudi Arabia, you said they actually are calling on OPEC to actually extend the production cuts beyond the June deadline all the way to July 2019. There's been recent political unrest in Venezuela. That's also adding volatility to the oil market. So should we see continuation of the of the rally we've seen in recent months? We could be looking at retesting the April high and should we go beyond that? We could be looking at targeting this region here, so a lot of solidation in around the 67 spot 80 mark. An active resistance is a few times at the back end of October last year. Actually, we've gone beyond that metric. We could be looking at targeting this region here, the kind of psychology important 70 bucks per barrel Now, all the last number of months is a solid upward trend that it's been in. Buying on the dip has been a fairly popular strategy. So if we do see a move to the downside, we might see fresh buyers enter the fold. So on WTI, if the market does manage to drift lower, support could be found from this red line here, the 200 day moving average, which comes into play at 60 spot 84. If you notice how on a few occasions, the red line, the 200 day moving average did manage to act as support and metric is actually managed to act as support in the past. It makes it more likely it will do so again in the future. If the market drops below that, support could be found from this area here in around the 60 bucks per barrel. It also coincides with the 50 day moving average. And you notice how the 50 day moving average did manage to act as support back in January this year. So once again, metric was important in the past. It makes it more likely it will be so in the future. Should we break below that level? We could be looking at targeting this region in around here, in around 58 spot 10. That area between 58 spot 10 and 58 acted as support on a few occasions in mid March. So it may act as support again in the near term. If you are going to be trading in the oil market, it is worth keeping an eye on the EIA update. The Energy Information Administration will release the latest US oil and gas inventory figures today at 1530 British summer time. And if you do keep an eye, if you are going to be trading Brent crude oil, if you are going to be trading WTI, it is worth keeping an eye on Brent crude oil. Dow theory tells us that the averages must confirm each other. And we're not looking at a chart here of Brent crude oil. And it's in a very similar pattern where by the market has been moving steadily higher throughout 2019. It also created a six month high last week. And we also seen a fairly sizable sell off. So while both markets are moving broadly speaking in the same direction, we can be more confident that those moves are going to continue. That's all for me this week. If you have any comments to make on this video, please feel free to leave a review on Google reviews. Thank you very much.