Volumetric analysis on January 15


Today is an important day for the British Prime Minister Theresa May. The Parliament of England will vote on the terms of the Brexit deal today. We sorted it out yesterday how it might affect markets, however, today it is worth recalling that high volatility is more an enemy for a trader than his friend. It is worth remembering that assets that imply a pledge or margin are classified as risky assets. Remember the Brexit referendum movements, where most speculators lost money. This was evidenced by public accounts. Yes, there are those who rise own funds, but their financial results are rather an exception. 

The task of the trader is to have positive result in the state of the market in which it is traded most of the time. Everything else is similar to the roulette game. The main dangers are a wide spread, rapid price change and a lack of marginal requirements. To blame the broker for the wide spread in the current situation is stupid. This is a market. This is really a big uncertainty, and the market maker's desire to get away from this uncertainty is understandable.

From the technical point of view, there are signs that so-called false breakdowns occurred on Friday and on Monday. Like it or not, unfortunately, we will know after a big move. But it makes sense to consider purchases only if we see a clear positive on the part of the Parliament of England. But sales only after the price is below 1.2710. And this seems to be the main scenario.


Oil stopped in its growth and even showed the initiative of sellers yesterday. Now we can say that the continuation of growth is a big question. Volumes distribution represents its maximum value is in the range of 51.75-53.20, and we can assume that there is an open interest of sellers. Given this, you can try to sell speculatively and in a small amount from this alleged resistance. The target for the fall can be taken 48.75. It is at this point that another range of 47.50-48.75 begins, where the open interest of the buyer is still likely to be found. In other words, we are now in a side event with borders 53.20-47.50. Most likely we will stay in this range for some time, but the way up or down will take place against the background of some positive or, respectively, negative news.


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