Daily chart
It seemed that the Light Crude Oil (CL) had found support around $100. It has lost 1.25% and 1.24% so far this Monday, and so the picture is likely that the next target is at 0.9844 which houses overrun line end -1/8 and have a bearish outlook for the next few days.
Apparently, Crude Oil traders are anticipating the release of inventory numbers next October 23. With the reopening of the U.S. government after lawmakers approved an interim budget and debt ceiling increase until early 2014 traders are anxiously awaiting these data certainly markets move strongly.
H4 chart
In the 4-hour chart we can see a clear downward trend of Crude Oil, after trying to break the 100.78 area around, where the centerline of its band of gravitation is. So the outlook for the next hour, perhaps, shows a more pronounced drop, but we must be cautious as the price listed at the overrun end zones, and have to wait for closing below $100. While 99.22 and 98.44 are both important support areas to consider, so do not sell at these levels as only an impetus for a sharp escalation in the coming days could be.
H1 chart
Finally in the 1-hour chart we can see that after this precipitous drop during the last 8 hours of the day so far, Crude Oil found in an area of the 99.61 support line where the end overshoot -1/8, the same time as we coincide with the bottom line of its trend channel. Also this area is the center line of the downtrend channel in 1-hour chart. Therefore, it does not seem very sensible to enter short positions, on the contrary, it seems a good opportunity to enter purchase orders with very tight risk, where we could place our stop at 99.00.
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