Daily chart
Crude Oil had a bearish session on Tuesday, though without achieving the 101.00 resistance level.
Data from the American Petroleum Institute showed that oil inventories rose by 4.55 million barrels last week, more than expected, and that prices slightly dropped. Stocks at U.S. oil hub Cushing, Oklahoma fell 83,000 barrels, the API said. US government releases from official agencies will be suspended over the next week so traders will only see data from private releases such as ISM and ADP. Markets today will also be watching the weekly report on US oil inventories. Analysts estimate commercial stocks rose 2.1 million barrels for the week ended September 27, according to a survey by Dow Jones Newswires.
At this time the black gold is trading at 102.07 on the line eighth Murrey. Although this line is considered a weak support area, however we also note that when the price stops at that level or very close to, it is a sign of a possible reversal.
4-hour chart
On the 4 hour chart we can see that Crude oil also found support at 101.00 level. At this time listed on its daily pivot located at 101.76, however it is limited by a downtrend line, which also lies very close to the center line of the trend channel, so that when you transfer the R - 1 located in 102.45 it may be giving us a clearer signal of purchase. But global markets are concerned about the effects of a U.S. government shutdown.
It is expected that the partial shutdown of the U.S. government to cut demand in top consumer of oil, with nearly 1 million workers out of work, short-lived. For the same reason our maximum stop loss is at 100.80.
1-hour chart
Finally the daily chart shows Crude oil is trying for the fourth time so far this week to break the area 200-day moving average and at this time converges with the support and resistance area located at 102.00. Therefore, we believe that a rise above 102.45 would be showing us a better picture on the topside, therefore we suggest that the price exceeds these levels.
Our recommendation: Based on the analysis of the 3 chart, our tip for today:
Buy up to: 102.45
Stop loss at: 100.80
Take profit at 104.00
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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