Daily chart
After reaching a low of 101.05 in the session of the first day of the week, Crude Oil bounced over 160 pips to the upside, thereby closing the market gap that had been generated. However, it did not get over time zone 2/8 (red line) located at 103.13, and the view remains bearish. Although the area of 2/8 was considered an important area of reverse, it was violated and stayed for more than 5 days the same, and taking into account that the yellow line of 1/8 is considered a weak support area, our minimum bearish sentiment to 100.00 dollars per barrel is maintained for this day by its position with a stop loss close to 103.13 and even to 103.30.
H4 chart
The 4-hour chart shows us the other side of Crude Oil within its downtrend channel and after finding temporary support around 101.00, it is currently under the previous trendline, which has not been completely overcome during the previous session and is likely to act as a resistance zone along with the R-1 located at 102.96. Therefore, we can enter the market by selling below 102.00 aiming at the third daily support at 99.56. However, if the Crude Oil can overcome the centerline of its trend channel that crosses around 103.34, it would invalidate the bearish scenario and we present a new picture.
H1 chart
Finally in 1-hour charts we can see that Crude Oil is now in the area of the 200-period moving average located at 102.36. At this point, if the price is placed at the moving average and daily manages to overcome its resistance of 102.96, number one scenario in the chart would be bullish; through our stop should be around 103.30. On the other side, what we expect to happen is that the price again violates located at the 102.00 support for levels down to 100.00 dollars a barrel.
Our recommendation: Based on the analysis, our tip for today:
Sell below 102.00
Stop loss at: 103.30
Take profit at: 100.00
For minimum risk of handling 2 to 1
If you have any questions or suggestions, please contact me right through:
Email: antonio.inga@analytics.instaforex.com
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