Daily Chart
Crude oil has been falling for a second day. During yesterday's session it was very close to its upper trend line which started to decline, falling below the line 8/8 and below its daily pivot located at 99.60.
However, today crude may demonstarte its fourth annual rise in five years.
It is expected that trading volumes would remain low, taking into account the fact that investors prefer to take profits at the end of the year.
As currently the crude is trying to breach its first daily resistance, it is possible that this move can extend to its S-2.
4-Hour Chart
4-hour chart gives us another interesting sight to this day. Crude oil is entering the range area as it is located below the line 5/8 (green line) which becomes the top line of the trend range, the same which in turn is below its 200 period moving average which could also be indicative of continuing its downtrend that started on Monday and it is possible to expect a fall at least to the base of its trading range, in this case would be the line 3/8 Murrey. Meanwhile, if you have open sale positions, you could lower our stop loss to 99.22.
1-Hour Chart
Finally, in the 1-hour chart we can see that crude oil is trading below its lower channel line of a very pronounced trend. But after the new minimum that it is supposed to hit during the next few hours, it may change the channel to a horizontal channel for a range of trend.
Market participants await the publication of data from the United States on consumer confidence and manufacturing activity in the Chicago region, scheduled for today, in order to assess the economic strength of the country. Moreover, the markets will eye the release of some more U.S. economic indicators which could result in the fifth consecutive weekly decline in crude oil reserves.
If you have any questions or suggestions, please contact me:
Email:antonio.inga@analytics.instaforex.com
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