 Good morning and welcome to the Church of the Week video with me David Madden. Today's date is Thursday the 21st of January 2021 and the time has just gone 602 GMT and this week's church of the week is a bring crude oil the cash contract The oil market has gone a very impressive rally recently only last week only only in the middle of Only in the middle of January Have we do we see the oil market hit its highest level in 11 months? No, why is this it was partially driven is mostly driven by the announcement in early January That Saudi Arabia will cut out push by 1 million barrels a day in both February and March Also playing in the mix is falling US stockpiles Recently there's been hopes that the new Biden administration is going to get out the spending route Help the US economy get on track This week we've seen better than expected Growth figures GDP figures and industry production figures out of China These have all been contributing to the upward move in the old at the oil market But not all of the news has been positive. It's also been bounced out by the pandemic There are there are tougher and extended lockdowns coming into place in Europe There are pockets of China, which is obviously the largest Importer of oil in the world. There are pockets of China Where lockdowns are coming back into place? So there are some concerns that that the man will weaken because of the health crisis itself On the flip side backs vaccinations have been rolled out But realistically speaking it's going to be some time so but overall the net impact has been quite positive You can see here the brain crude or always be in a solid upward trend since November Like I said only only last week. I had as high as level in 11 months And if you do press on higher from here because we're currently trading around 55 55 spot 97 if you do press on higher from here Where could we look to be heading to the upside? Well if Bush run does continue We could be looking at heading up towards 200 week moving average here Which comes into play at 58 spots? 65 which is this red line along here and we can notice how 200 week moving average acted nicely as support on a few occasions back in August of 2019 We can also see in 2020 it acted as both support and resistance. In fact When the crisis really kicked off and we had a rebound in the oil market and into mid into early February We can see that the we can see that Brain crude oil that the highs of mid February didn't actually get up as close to the 200 week moving average But nonetheless, they got their reason to be close Essentially the metric has been of importance in the past whereas making whereas or has been In this case both support and resistance. It makes it more likely it'll be of importance in the future So keep an eye out on that level there Which is 58 spots 60 65 the 200 week moving average if you go beyond that We can then be looking at targeting the kind of psychology born 60 bucks per barrel Now if you do see any moves to the downside, where could we look at work? We potentially be looking heading back towards we could be looking heading back down towards this blue line here The fifth day moving average that comes into play just north of 50 dollars a barrel in a 50 spot 17 And you know, not only is it kind of 50 dollars a barrel I kind of a big number to keep on out of itself The blue line here the fifth of the movie average action is both, you know, as we can see here resistance Back in October and also active as support in early November So once again the fifth of the movie average has been an important metric in the past So it could be of importance in the future and even if you do drift below the fifth of the movie average You could potentially find support from the lows of early December which come into 46 spot 81 And as you can see here the last few months buying on the dip has been a popular strategy in the last few months As the oil market continues to have moved higher Now if you aren't going to be trading breakthrough oil It is worth your while keeping an eye on what's going on WTI West Texas Intermediate the other popular energy contract One of the tenants of Dow theory is that the averages must confirm each other which essentially states Two markets that are quite similar Should be moving or are likely to be moving in the same direction So if you if you're trading a break food oil and you notice that it's in an upward trend If you then see that a similar contract WTI is also in a report trend You can have a more confident a brain crude oil It break through doors upward trend is going to continue and it's a similar situation here You've seen WTI move and a solid upward trend in the last few weeks and months It was only the middle of last middle of last week that we also see WTI rack up 11 month high So if we're seeing multi month highs being achieved on WTI and brain fruit You can then be more confident at the wider upward trend in brain fruit is going to continue That's all from this video. Thank you for listening. Have a good training day