Daily chart
Crude Oil fell yesterday to its lowest level until reaching a low of 95.95 after the Energy Information Administration of the United States (EIA) reported an unexpected rise.
It is speculated that crude oil prices could decline further as crude inventories in the U.S. rose by 5.2 million barrels last week and in the center of Cushing stocks rose steadily during the second week, which resulted in fears of oversupply in the U.S.
However, technically we can see that despite an unexpected drop from yesterday, at this time the CL seems to have found important support line -1/8 which is located at 96.88. On the other hand, we also observed that 96.93 is the daily pivot on which trades at this time.
4-hour chart
Similarly 4-hour chart shows that in 96.88 which houses line 6/8 Crude Oil Murrey it found significant support for this line is regarded as a major support area at this time and frame d should be certainly taken into account. It could be noticed that the oscillator strength has been declining, while the oscillator d trend is on the rise. Finally there is the bottom line (magenta line) of its bullish channel, which also becomes an important support.
1-hour chart
Finally, as we wrote in our yesterday's review Crude Oil has not got over the line 3/8 that becomes the basis of its trading range. On the contrary, this area experienced a rebound just a couple of hours ago, testing the top line of their trading range 5/8 located in 97.66 has the support price. In this case the line 4/8 (blue line), which becomes a sort of pivot area since the price above that line there is greater likelihood that the prices will continue to rise.
Our Tip: Based on the analysis of the 3 charts, our suggestion for today is above 97.66 Buy in the long term with a stop loss below the last low point during yesterday 's session was 95.95. Although the risk may seem significant, however if we consider a possible rise to at least 103.00, this factor remains lower risk against potential gain.
If you have any questions or suggestions, please contact me right through:
Email:antonio.inga@analytics.instaforex.com
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