Weekly graphic
Crude oil after falling nearly 200 points during the session of Tuesday, August 20, and observing the weekly chart, we can say that is in a sales area for three reasons.
First currently trading at 104.90 reached very close to the minimum 4 weeks before was 104.61 and has found support at the base of your daily trend channel.
Second, it is below the line + 1/8 considered an extreme online quote and in this case the crude oil after contributing for a few weeks on this level, with the fall of Tuesday stood beneath this again online.
Third, and not least, the price of crude oil is below its weekly pivot and below S-1 below.
Which shows the probability that at the time of transferring the baseline of your daily trend channel, black gold could experience a precipitous drop to $ 100 a barrel.
Daily graphic
The graph also observed a day bearish signals as the line 6/8 (red line) which was becoming an important resistance after the fall of the last session on Tuesday has been largely overcome. Moreover, the daily pivot located at 105.50 is also on the levels of current trading price. We therefore consider that this might be a good area to enter short positions. However, due to the high volatility of this commodity, before this can happen is falling crude oil likely to experience a rebound to the upside, especially if we consider that in the coming hours will be posted weekly inventories. Wherefore then suggest selling into these data are published and as close to the 106.25 level to minimize the risk.
Graphics for 4 hours
The 4 hours chart we can see a possible retraction of crude oil in the next few hours. This is because at this time is very close to the line 2/8 (red line) considered a support line and reverse important. On the other hand we also note that these levels are the bottom two lines of a band of gravitation. But we dare not suggest entering a buy position it would be too risky because there is a downward force, as we show both the oscillator and the oscillator strength of trend. Conversely suggest waiting until retraction 106.25 levels to enter sales positions with objectives to 100 or 101 U.S. dollars per barrel taking a risk of at least 200 pips.
