Monthly chart
After the close last week with a bullish candle and the imminence of an attack on Syria by the U.S., today, Crude Oil looks to continue its rise and may seek to break the last peak which was at 112.22 and even the peak of May 2011, which was at 114.82.
Delays in such action, due to lack of foreign support and desire of Obama to seek congressional approval before any call to arms, have kept oil prices to skyrocket in excess. The Congress will meet to discuss an action plan for Syria on September 9, to which oil markets could begin to react more violently.
Weekly chart
In weekly chart note that Crude Oil is in an overbought area and it is trying to break the line +2/8 considered an extreme area overrun and that under normal conditions the price should withdraw from these levels, but given the conditions prevailing world we must consider that we place its new 119.04 R-3 and have your weekly pivot at 108.38. For this reason, we can expect in the first tranche petroleum prices last until these levels of 119 or 120 dollars a barrel, with the levels of the pivot support at 108.38.
From start today any military action in the Middle East, there is no doubt we will have a highly volatile market which makes it difficult to estimate the risk benefit with which we could operate.
Daily chart
The one-day chart shows a road still ahead for Crude Oil above the line 7/8 (yellow line), considered to weak support line. We believe the price range in search of a new resistance level In this case could be the line 8/8 (solid line) and standard in a situation, that would be the last resistance probably would retract prices. However, it is possible that Crude easily breaks these levels of resistance to fetch line +1 / 8 +2 / 8 as considered these areas of extreme resistance.
But if we enter the market, the risk seems too high and we have to place our stop loss below 106.82
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Email: antonio.inga@analytics.instaforex.com
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