Daily chart
After rising last Tuesday, Crude Oil is maintained with short strokes and above its line of 3/8 the next two days. Oil prices closed at 97.32 yesterday and now is at 97.60 with which we can see has traveled just under 30 pips although this represents a price above the previous peak reached last October 29. However a short distance in 97.83 is the first resistance. Furthermore, oscillator strength seems to indicate a temporary exhaustion of its upward trend and is likely to pass a retraction that could be supported on the S-3 and even on the top line of the downtrend channel.
4 hour chart
In the 4 hour chart like yesterday Crude Oil is found in areas of extreme price as it comes in your line facing resistance +1 / 8 (purple line) trying to overcome the same this morning; however, we can see that they are the number of candles on this time frame who tried unsuccessfully to overcome this level, so any rise above this temporary serious line and instead could push prices lower, still needed a break after more than 500 pips of upward trend, which is why we believe that eventually could go selling below 97.65 with a stop loss of 50 to 60 pips to gain a possible range of at least 3-1.
1 hour chart
In 1 hour chart even though the Crude Oil seems to have some way to go in upward direction, despite the fact that right now you are finding strength in their line 5/8 (green line) the same as the line becomes top of their trading range gives us the chance of a retraction below such levels to find any significant support after last climb upward. Even if you managed to enter this level of 97.66 even its next resistance is at 98.44 and close the line 6/8 is considered as an important line of reverse.
If you have any questions or suggestions, please contact me at:
antonio.inga@analytics.instaforex.com
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