Daily Chart
Oil prices collapsed on the first trading day of 2014 as Libya prepared to restart a major oilfield, and with speculation of a sharp rise in crude stockpiles in Cushing, Oklahoma.
Prices were also undermined by expectations of a further dip in fuel demand as a winter storm bore down on the northeastern United States.
To decrease in the U. S. jobless claims and increase in the manufacturing activity strengthened the U. S. dollar forecasts; the U.S. Federal Reserve will continue to slow its stimulus program, pressuring oil prices. A weakening stock market further added to losses.
There is no movement at the moment; after the publication of the inventories of the week, we can expect that the CL can fall even more.
4-Hour Chart
The figure of 4 hours shows us that the crude oil continued falling even below its third weekly support. The pace of decline got worse, so the crude oil was below its moving average of 200 sessions until you found support few hours ago on the bottom line of its trend channel. As the picture shows, we might expect that this fall will also continue today until the 6/8 line (red line) which is located at 93.75 since it is considered as an important line of reverse.
1-Hour Chart
Finally, the 1 hour chart also shows us a similar picture. Although at this time, the crude oil is found in the area of the two lower lines of its trend channel, however, it is possible that there is an expansion of the same with a fall of about 150 pips more until you find support in the area which lies between 93.75 and 94.00. Unless the Energy Information Administration data shows what favours the current values of the light crude.
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Email:antonio.inga@analytics.instaforex.com
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