Daily chart
Crude Oil in 1-day chart, after trying to break the area, bounded from the line of 6/8 (red line), considered a major reversal zone when the price is rising. In this case it would be a zone of important support. After reaching a low of 105.59, at the moment, the pair is recovering again. Its uptrend channel can suggest paring all the losses seen 2 days before, above 109.38 again. On the other hand, a possible decline will be limited by the previous resistance zone located at 105.47, 104.69 and 103.90, before reaching the green line area of 5/8 that becomes the basis for the top line of the trading range.
H4 chart
In 4-hour chart after entering an extreme overshoot zone and near line -1/8, it also gives us, at least, bounce signals to 107.81, where the line 2/8 (red line) is placed, which, when the price falls, acts as a major support zone and in this case amounts to crude oil for significant resistance to consider in this timeframe. However, this is possible bullish session today, which may last up to 108.59.
However, a possible drop to the 104.00 levels can also occur through the same thing if we enter 106.25 eventually, buying on our risk should be around 170 pips, for a possible similar path.
H1 chart
In H1 chart we see that Crude Oil has significant support among 105.25 and 106, because in this range thare are the lines 0/8, -1/8, -2/8. The latter two areas are considered overrun end where there is a high probability that prices bounce upward direction.
Our Tip: Based on the analysis of the three charts our suggestion for today is that we can get into buying positions above 106.25 with a stop loss of 100 pips placing it below the extreme line of - 2/8
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
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