Daily chart
As we had expected, Crude Oil went down on Tuesday from the level of 101.56 to the closing level of 100.94. Our perception is that it will hold in this area and continue its range movements later.
And as we mentioned yesterday in our analysis, Crude Oil may continue its descent into the range of 100, as the fundamentals indicate that it should be there. After the disappointing data from China, with exports falling on the weekend, it is likely to fall in oil demand. Inventories, last week, showed an excess of oil in the U.S., before the EIA closed its doors due to the budget crisis.
H4 chart
The 4-hour chart is forbearing to Crude Oil at the line eighth (yellow line) of Murrey math lines. Since the line is considered as weak resistance in this time frame, we are likely to see continuation of its fall below the red line of 2/8, until the substrate is stronger than it might be at the line 0/8, and also at this level, there is the bottom line of its band green gravitation.
H1 chart
Finally, at 1-hour charts we can see that Crude Oil fell again from the top line of the trading range of 5/8 (green line) to the support under the bottom line and slightly set back above it. It is to be supported in this area at line 3/8 (green line).
Our recommendation: Based on our analysis, our suggestion for Wednesday is:
Sell below: 101.10
Take Profit: 100.00
Stop loss at: 102.56
If you have any questions or suggestions, please contact me right through: Email:antonio.inga@analytics.instaforex.com
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