Daily chart
Crude Oil prices came down in the early hours of the opening session. However, this morning it resumed its upward trend again placed above its daily pivot at 96.78, which is only 10 pips from its line 3/8, it is also being overcome. This line 3/8 becomes the basis of its trading range, therefore the dominant picture comes up and we still expect the next resistance, which is at the blue line. Intermediate 4/8 is located at the level of 100.00 dollars per barrel. The oscillator strength shows that conditions for this scenario are met, although the oscillator force has opposite direction.
4-hour chart
On the 4-hour chart we can see that the price of oil is moving in two-trend lines on the basis of line 6/8 (red line) of Murrey lines, the same found in 96.88. Furthermore, at this time the price is also located on the centerline of its uptrend channel what could cause the price to retract back to 96.88 and then continue to rise, which could give us an interesting entry point to buy with a stop loss just below its uptrend line, thus minimizing our risk.
1-hour chart
Finally on the 1-hour chart we can note that Crude Oil, having bottomed out, is reaching a minimum near the line -2/8 (white line) which is considered to be an extreme support line, steadily rebounding and now already located on its 200-period moving average as well as an important support is located at $97.00. Since the line 0/8 Murrey is considered the last line of support, we can expect the price to fall slightly to these levels then continue climbing could be a first installment to the line 4/8 (blue line) which becomes a neutral line that could set the tone and direction of the CL this week.
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Email:antonio.inga@analytics.instaforex.com
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