Daily graphic
Crude oil continued its third day downward trend during the session on Wednesday August 21 after it was unveiled inventories for the week of August 16 that according to reports from the Energy Information Administration (EIA) this fell to 1.4 million barrels, less than expected 1.6M. At this time listed in 103.80 close to its upper trend line located at 5/8 (green line) Since this would be the third time that oil prices try breaking this area and both the oscillator strength and the oscillator to show us a bearish trend, we believe that prices will continue with this trend to find support at 100.00 dollars a barrel.
Graphics for 4 hours
The 4 hours chart trading at 103.80 can find below the yellow line of 1/8 that according to the theory of Murrey lines, this level is regarded as a weakness of resistance. For the same reason that prices could continue to fall until the line -2/8 in 1 hour charts becomes a major resistance line and reverse zone. Also in this time frame we can see that crude oil has broken a trendline and there is a new support line at line 100.67
Graphic 1 Hour
In 1 hour charts, the crude oil has traded below the line 5/8 (green line) during the first hours of trading, which could indicate the entrance to a zone below 103.91 sale so we could expect a line drop to 2/8 which would be its support zone.
Therefore, based on our analysis of the three graphs, our recommendation would go below 103.91 selling, placing our stop loss at 104.69 and take profit at 102.34.
