Daily chart
Light Crude Oil in its short-term uptrend is facing resistance at the 103.91 area. To find the area under the line of 3/8 (green line), which comes to the bottom line of its trading range we can say that the long-term trend remains bearish the same as entering buying at these levels would too risky. On the contrary, we believe that the next week Crude Oil resumes its downtrend. It is possible that during today's session to achieve new highs maybe at 105.00 104.70, found however at these prices in an area of resistance it is likely that from here again retracts downward.
H4 chart
In the 4-hour chart we can see that Light Crude Oil is trading above the line of 5/8 (green line) in this time frame, becomes the top line of its trading range which could be a sign of that the short-term trendline continues until 6/8 (red line). On the other hand, we should keep in mind that this level of 103.91 converges with the top line of the downtrend channel, which gives us a high probability that the price of Light Crude falls again. We can also observe the formation of a triple top which shows that in this area there is a strong resistance.
H1 chart
Finally in 1-hour chart we observe a slight retraction of Crude Oil from the resistance zone located at 104.00. Although the price is right now at its 200-period moving average, we believe it is likely to drop from these levels. So if you place a sell order below 103,90, it must do a pretty tight stop loss at 104.30 and a take profit at 102.00 inclusive.
If you have any questions or suggestions, please contact:
Email:antonio.inga@analytics.instaforex.com
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