Weekly chart
Yesterday crude oil continued slipping below $100 per barrel after the previous day's data showed that oil supplies increased last week.
The American Petroleum Institute reported an increase of 3 million barrels for the week ended October 18, 2013.
Technically, the weekly chart shows Crude Oil is below line 8/8 and is currently finding support on their weekly support number 3, which could make a pullback then continue sliding down. But it could also be a support for a setback that may terminate at these levels and resume its general uptrend.
Daily chart
The daily chart seems to confirm that the fall of Crude Oil of the run would be about to end up in this area as it is in line -1/8 (purple line) considered line and thus overrun end of a possible change of direction should technically be at the psychological level of 0/8. However, due to the high volatility of Crude Oil we can expect even steeper drop to 93.75 which houses line -2/8, which certainly is not far away.
4-hour chart
On the 4-hour chart we can see that oil is below the line of 2/8 (red line), an important line of possible reversal to consider, so we can expect a rebound above 96.88. However it does not exceed this level the price may continue to fall until 95.30, where the line is located 1/8 Murrey line in this time frame.
Because it is located in extreme limits, we do not recommend selling in this area. However, we can get above 95.30 buying in the short term to take advantage of a possible decline at least until 98.44.
If you have any questions or suggestions, please contact me right through: Email:antonio.inga@analytics.instaforex.com
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