Daily chart
After being released on Wednesday morning, weekly inventory figures from the Energy Information Administration - EIA Crude oil futures continued their downward trend, as these reports showed an unexpected rise in crude supply.
The EIA reported that crude inventories for the week ended Sept. 20 rose 2.6 million barrels. Analysts expected a decline of 1.5 million barrels and the forecast was at -1.0M barrels. Gasoline supplies also rose 200,000 barrels, while distillate stocks fell 200,000 barrels, the EIA said.
Observing our daily chart and following the closure of the daily candle today, it completely invalidates possible rebound we saw yesterday and we are looking at a continuation of the downtrend with a target closer to 100.00 dollars a barrel.
H4 chart
In the 4-hour chart the possible head-and-shoulder figure to become obsolete because after the minimum is reached at 102.20 during Wednesday's session we saw a completely different picture. And in retrospect we can see also Crude Oil at no time was above 104.00, which may be an entrance area.
Therefore, from this area we have an interesting opportunity to enter short positions, because if we place our stop 20 pips each of the last peak, which can be 104.15, we would have an interesting journey to the line 0/8 (solid line); it will become the support area that is a little difficult to break.
H1 chart
Finally, although the 1-hour chart shows us Crude Oil on the bottom line of two trend channels in different periods and it will result in an apparent rebound, but the fact that the general trend and the 4-hour chart shows us a different sign, plus an unexpected increase in crude inventories makes us think about the continuation of the downward trend.
Our recommendation: Based on the analysis of 3 charts, our tip for today:
Sell below the daily pivot located at: 102.83
Stop loss at: 104.15
Take profit at: 100.00
For minimum risk of handling 1-1
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
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