Daily Graphic
After having reached a high of 107.86 during the session on Thursday, the crude oil is trading at 107.40 right now almost 20 pips above its daily pivot with a possible follow-up for today's session weekend. So we can expect the price try to break its peak to test R2 placed at 108.48 which is very close to the trendline.
Regarding Murrey lines we can see that the price is in a buy zone as the line 6/8 has reached 106.25 and comes to be an important support line if the price fall below 107.22. We therefore consider that in the next few hours the price could be extended to R3 to stop close to the line 7/8 (yellow line) for a possible reversal to the downside.
Graphic for 4 Hours
The 4 hour chart also shows us that the crude oil is located in a shopping area as it trades above the line 5/8 Murrey lines, reaching that way about their trading range, with the first target 108.59 with a possible extension to 109.38 where the line is located 8/8 which is regarded as a resistance line end. On the other hand in the background, both the oscillator and the oscillator strength of trend change signal we get for now. A return below 107.03 would invalidate our buy signal and would better get out of a long position as it may be the first sign for a possible drop to the 103.00 or 102.00 dollars per barrel.
Graphic 1 Hour
Finally, the 1 hour chart allows us to see the crude oil entering a range area, since it is placed on the line 3/8 (green line) the same as it is placed very close to the base of its uptrend channel the same we can expect a price extension until at least 108.20 where we see the line 5/8 would become the roof of their trading range in this time frame.
Therefore, and based on the analysis of the 3 graphs, our suggestion for Friday August 16 is:
Buy up to: 107.42
Stop loss at 107.03
Take profit at 108.20
