Daily chart
On Monday crude oil was bullish experienced for the third day, as traders pondered when it could restart the Fed’s monetary stimulus.
Oil prices moved little amid data showing that retail sales fell in September, while wholesale prices fell slightly due to a sharp fall in the cost of food.
The American Petroleum Institute will release its weekly report today, with crude oil reserves are expected to show a gain of 3.5 million barrels in the week. A day later, the Energy Information Administration of the U.S. (EIA) data published weekly.
Meanwhile Crude Oil seems to be prepared to close a new session today being bullish, as it is oscillating on its weekly pivot and while this is not completely over the end of the day we can consider the continuous bullish session.
4-hour chart
On the 4-hour chart we see that the downtrend channel is about to be infringed as Crude Oil after having retracted slightly below the line 7/8 Murrey lines currently listed again in 98.30 and it is about to break both lines of resistance.
As this line of 4/8 considered a weak resistance line, it is likely that prices will go in search of a new resistance around $100.00. However, a second scenario is that Crude Oil searches again on its previous support line 6/8 (red line) for the same reason that our stop loss should be below that zone.
1-hour chart
Finally on the 1-hour chart a significant support area 98.00 is also found, which also houses the 200-day moving average from Crude Oil which is ascending again. On the other hand, we can see that Crude Oil is currently in the area overrun end of line 0/8 and -1 / 8, which is also a sign of a possible retraction to the upside from this area. Moreover, the oscillator strength is also maintained at ground upward.
Therefore, our tip for today: Buy above 98.00 with a stop loss at 96.50 for minimum risk of 1-1.
If you have any questions or suggestions, please contact me right through:
Email:antonio.inga@analytics.instaforex.com
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Performed by Antonio Inga Guerra, Analytical expert InstaForex Group © 2007-2013 |
Crude oil: Mathematical analysis with Murray Lines for October 29, 2013
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