 Hello and welcome to the chart of the week video with me David Madden The days date is Thursday the 4th of July 2019 and the time has just gone 950 British summer time and this week's chart of the week is Brent crude oil and taking a look at the wider view From the mid-December 2018 up until April 2019 saw a sizable rally in the oil market But since then it's had a fairly decent move to the downside and it began in late April Again, I'm not my series of lower lows and lower highs And we can see here that the market went up when I pressed higher In in in late in each unit into into early July We can see that I ran into resistance at this red line here at the truly moving average which comes into play at 67 spot 22 and The question we need to ask ourselves in this video is is your market going to Turn up as it's drifted lower is your market going to continue to press lower and retest these lows And if they take off those lows, are we going to see further multi-month lows? Or are we going to see a continuation of the wider trend that's been in place throughout 2019? So if you do manage to get a drive-on lower from here We could be looking at retesting the recent lows which come into play around 60 spot 30 And if you drop break below that and if you break below the psychology board 60 bucks per barrel We could be looking heavy back down towards this area here in at 50 50 56 spot 71 Any move to the upside Might run into resistance this red line here the truly moving average as is active and resistance in the past It might act as resistance in the future and that comes into play at 67 spot 22 A move beyond that could take us up toward this area here in the late May High in at 70 spot 60 Spot spot 70 spot 63 and if you go beyond that we could then begin to think that you know what maybe This downward trend that began in it between April and June has come to an end And we keep looking continuing the wider upper trend that's been in place throughout 2019. That is if you take out The late May highs and if you go beyond that level there We could be looking at targeting this area here the mid May highs in around 63 spot 60 Sorry apologies 73 73 spot 60 Now if you are going to be trading brain crude oil, it's worth keeping me on what's going on on WTI So West Texas intermediate The price action has been fairly similar after a major rally up until late April We've seen a fairly sizable sell-off and we could notice here that on WTI It did manage to trade above its respective two-day moving average for us to fall them back below It's 200 day moving average and While WTI and brain crude oil both remain below the respective two-day moving average It's more like it's increased the likelihood of both markets can pushing lower Dow theory tells us that the averages must confirm each other and which essentially means Markets that are similar should be moving in a similar direction So if while both markets remain below their respective two-day moving average It's likely we could see further pressure to the downside in both markets Now if you are going to be trading brain crude oil Please remember that today is the 4th of july so the u.s. So it's a holiday in the u.s. So we're likely to see low trading volumes Tomorrow is the 5th of july which is which is going to be the non-farm perils event Which could see an increase in volatility depending on how the numbers come in Speaking of non-farm perils my colleague michael hueson is holding a live webinar At tomorrow at 13 15 British summertime If you go to our website cmcmarkets.com and under learn and under webinars and events you can sign up for that live webinar there And finally If you have any comments to make in this video or any of the videos we've made here at cmc markets Please feel free to live review on google views. Thank you very much