Daily chart
In 1-day charts we can see that crude oil, during the first hour of trading on Wednesday, reached the first objective point of 109.38 from our yesterday's analysis. Now the pair is trading above 110 per barrel. It passed the line 7/8 (yellow line) of Murrey math lines easily and it is developing a minor line of resistance further. We can expect an escalation to 112.50 even today, which houses line 8/8 considered as the last line of resistance, which is hard to break. We can also observe that the line 8/8 converges with the center line of the uptrend channel, which shows a probable downward retraction from this point.
4-hour chart
In the 4-hour chart, we can see that crude oil is at overbought highs and reaching above line +2/8 considered as an extreme line of overrun.
Something definitely influencing this behavior is the growing tensions over the Syrian conflict and an impact it may have on the supply of crude and possible U.S. military intervention.
However, these levels could be very risky for entering a long position because, at the moment, the price is located very close to the 112.50 level, where the line 8/8 (in 1-day chart) placed and considered as a final line of resistance, which is very difficult to break. So, eventually, we would expect a retraction from this level.
So, we do not offer any suggestions for today. Instead, we suggest staying alert to global data and the conflict in Syria.
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
