Hello and welcome to Cantos Charts Masterclass. I'm Sandy Jadeja, Chief Technical Analyst for City Index and welcome back to another lesson in using technical analysis to forecast potential trading opportunities. But as always, these are simply for information and educational purposes only. We use simple technical analysis and also look at key support and resistance levels.

Let's take a look at this chart over here. This is the weekly chart of crude oil and we can see that crude oil prices have been rising steadily over the last few months.

But something has changed in the last few weeks and that's what we really want to focus on.

We made a potential high, came down, and then attempted a rally higher, but that fell and then took out the recent low and for that we're going to take a look at the daily chart.

So we can see straight away 115.52 had been the high. We came down and recently have made a low at 89.61, but now this market is in consolidation.

There are two key levels to watch for. A break on the upside would require 99.42 to be breached and on the downside we had 93.55. Clearly, the pattern is consolidation, so really this market is hesitating. It's waiting for a break. The bulls are going to need to take out that 99.42 in order to go back and test that 115 area. But since the shorter term trend is to the downside, this market would require 89.61 to be taken out.

There is a potential reverse head and shoulders forming. We're going to have to wait and see if that happens. But right now, these are the key levels to watch over the next few weeks to see what happens on prices of crude oil.

Now if we add technical indicators, the parabolic indicator is suggesting that on the short-term this market is still bullish. Support is coming in at 94.09. That's exactly where the parabolic is sitting right now and on the upside, your target would be 99.42. So the idea is that the parabolic is suggesting a move to the upside. Your upside target is 99.42 and that's really where you would be looking for some potential reversal signals.

Now you can of course use candlesticks for that. On this chart here, this is again the daily chart. I've actually added a 20-day moving average which is helping crude oil to find some support and as you can see, prices have been really gravitating towards this area here. The moving average is starting to turn towards the upside, so short-term, as I said, this market is looking bullish.

Now at the bottom we had a bullish harami and also a hammer. That was suggesting that once prices reached a key support level in terms of the price levels, we had these price patterns which were suggesting a potential move to the upside and that's exactly what's happened.

So use very, very simple technical analysis. Use the simple indicators like the moving average and the parabolics and they should help you. Always use the top down approach. Use the lower timeframe for the entries and exits and of course, keep your analysis clutter free. Here at Cantos we've always kept our charts simple and clutter free and of course, use stops to protect your positions.

Well we'll keep an eye on various commodities over the next few weeks so stay turned to CantosCharts Masterclass. In the meantime, have a great, safe trading week. I'm Sandy Jadeja.