 Good morning and welcome to the chart of the week video with me at David Madden Today's date is Thursday the 27th of August 2020 and the time has just gone 1146 British summer time and this week this week's chart of the week is brain crude oil the October contract First thing is first. Let's take a look at the price action over the last few months We can see here at the market Basically turned around in late April after the brutal sell-off that was that I was incurred on the back of the the Pandemic it's been pushing higher since late April only last week. I apologize only in the first week in August It hit a five-month high Since then it's remained in the upward trend, but hasn't actually retested the five-month high But yesterday and the last couple of sessions The highs that have been achieved have not been too far away from it So we're currently trading around 40 45 dollars and 60 60 odd cents The highs that were achieved at the beginning of the month or in around 46 dollars and 23 cents So we're not too far away from the recent highs which in turn are multi-month highs If we do manage to take out the August highs I could put us on track for this price area here at the lows I've early I've early March in a 46 dollars and 67 cents if you go beyond that The next area to keep an eye for will be I suppose be the 50 dollars a barrel of the big kind of psychological number Now if we take a look at the price action in the last few months We can see that kind of buying of the dip has been a fairly popular strategy with traders So if you do see any pullbacks, we could see potentially see fresh buyers enter the fold So if I do move lower from here, we could we could find some support for this blue line here at the 50 moving average Notice how just nor you know in that general area I could nicely a support in late July and also the lows of latest mid to late August Didn't actually quite get as low as the 50 moving average, but there they got down to that general area So if do you have a move back down toward this blue line Which comes into play at forty three dollars and seventy five cents that could potentially act as support And even if you go below that support could be found from this zone here the lows in the lows which come into play In the middle at a forty one dollars and seventy two cents and that's that's that's the lows From late July, but we can see here That the kind of forty two dollar area also acted as support as a region as well So keep on our for 42 dollars down to kind of forty one dollars and seventy two cents And if you do happen to have a fairly size of break below that We could see support couldn't play from this zone here in a 40 bucks bar barrel Which course would be kind of a big psychological number now keep on our keep on our for the weather adverse weather that's that's Developing in the in the Gulf of Mexico Essentially all workers having flown out of the some of the rigs that are operating in the Gulf of Mexico This talk that tropical storm Laura's been Laura has been upgraded to her to hurricane Laura So that region as a has come under pressure in terms of adverse weather Part of the reason for the move upward move in the oil market also during the week U.S. Energy stockpiles have been a decline on Tuesday the American Petroleum Institute report API numbers showed that U.S. All stockpiles fell by four point five million barrels That was an increase on the previous week where they fell by four point three million and already yesterday the e the energy information administration the EIA report showed that Both oil and gasoline stockpiles both fell by a larger than expected So the kind of pressure has been in billing to the upside But we really yet to actually take out the most recent high So if we do take out the most recent highs that could have put us on track for the loads of March If we go beyond that we could be looking at heading up towards 50 bucks per barrel If you are trading oil today or to be honest any of the financial markets today keeper keeper I for Jerome Powell. He's the head of the Fed reserve. He's speaking At a very close at the Jackson Hole symposium at 1410 British summertime So whatever mr. Powell has to say He's likely to reiterate the view that the Fed reserve is going to do what it takes to assist us economy But he's please keep an eye for that update because it's likely to add volatility That's all from this video. Stay safe. Have a good trading week and good luck