Daily Graphic
Crude oil has remained bullish recovery today although slight movements of about 37 pips from the opening and closing of the market. However, some analysts conclude that the general fundamentals do not support the current price levels since the EIA just a few weeks ago said the average oil price of $ 93 - $ 94. Better than forecast data and overall growth and recovery will Increase the demand for oil but It Should not push prices above the prices in 2006-2007 When Global growth and demand was at record highs. Over the last few years, production of crude oil has risen to record highs, With The U.S. becoming one of the world largest producers and exporter of crude oil. Considering all these data, we consider the 106.25 level is an important area of resistance and is likely to act as a reversal level.
Graphic for 4 Hours
The 4 hours chart shows stagnant crude oil in an area of support and resistance as the line 4/8 (blue line) is considered as the largest online support and resistance, the concept is: buy and sell when the price crossover. On the other hand we also observed in this area, the vertex of an angle formed by the intersection of the two lines (bullish and bearish). So we believe that it is likely that crude oil begins to fall from these levels in the next few days to support area located around 103.91. However, if the price range is above the line 5/8 located at 107.03 would invalidate this scenario.
Graphic 1 Hour
In 1 hour charts oscillator strength and oscillator trend also show signs of exhaustion of the bullish trend.
Also in this time frame 106.25 price level is located 8/8 (solid line) considered this line as a final line of resistance which is very difficult to break according to the theory of Murrey. As recommended sell on 8/8 and left near 6/8.
Therefore, our recommendation for Tuesday, August 13, is:
Sell below 106.25
Stop loss at 107.03
Take profit at 104.70
