Daily chart
After a holiday on Monday a slight movement was observed in the market for most of the day. Crude oil remains, in our opinion, technically in the sales area. But the political landscape has not improved much, on the contrary after only a few hours ago declaration Syrian President Bashar Assad, warned in an interview that the Middle East "is a tinderbox," and if the U.S. Syria and France attack "everyone will lose control of the situation and the gunpowder explode."
"Anyone who acts against the interests of Syria and its citizens is our enemy," says Asad in reference to these two countries, in an exclusive interview with the French daily Le Figaro, published today in The World.
So the outlook not only for crude oil but also for everything that is traded in Forex becomes uncertain and erratic highly regarding what art can tell us reading the market.
4-hour chart
According to what has been said in the previous paragraph and according to 4-hour chart, technically we can expect a decline in crude oil prices at least to 104.69 since there is line 3/8 (green line) that comes to be the basis of its trading range.
On the other hand, also in that area, we observed a trend line, which is likely to act as a support area for crude oil in the second day of trading.
But we must not forget to place our stop loss around 107.30, where the peak in this time frame the previous day.
1-hour chart
Finally, the 1 hour chart also shows us a downward trend channel after the range of most of the hours of Monday has been flooded; however at this time the crude oil trades below 5/8 (line green) becomes the top line of its trading range. We therefore hope that this second trading day crude oil moves downward, aiming to break the low reached during Monday's session.
Based on the three graphs analyzed, our suggestion for September 3, Tuesday is:
Sell below: 107.03
Stop loss at: 107.30
Take Profit: 103.91
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
