Daily chart
In our view crude oil remains bearish. While at this time it is finding some degree of support in 103.13 where the line eighth (yellow line), but this line is considered as a weak support zone. It is likely that the price breaks this level and follows its downward movement. However, it would have to reach a price below 102.34 where a previous support, meanwhile if the crude oil in this area stops and starts to be a trading range would result in a likely continuation to bullish which we believe it is unlikely.
Instead we may consider a rebound from 102.34 as resistance taking the bottom line of its uptrend channel around 104.60.
4-hour chart
On the other hand, also watching the 4-hour chart you might probably notice a depletion in its medium-term downtrend since topping line is 0/8 (solid line) considered the last stand area in this time frame and it is difficult to overcome. However, due to the high volatility of the oil, it well could reach the area of -2/8 which is considered an end region of overshoot and then experience a short-term rebound probably up to the bottom line of its trading range of 3/8 (green line) located at 105.47.
1-hour chart
On the 1-hour chart note that crude oil has been moving towards the base of its trading range for this time frame found in 102.34 where there is the line 3/8 (green line).
On the other hand, we also note that it is in the middle of its trading band located at 102.72 (blue line), which could mean a probable rebound from these levels as a respite for the last three days of fall.
Our recommendation: Based on the analysis of 3 charts, our tip for today:
Buy up to: 102.34
Stop loss at: 101.70
Take profit at: 104.60
Risk management for a 3 to 1
If you have any questions or suggestions, please contact me right through:
Email:antonio.inga@analytics.instaforex.com
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