CRUDE OIL Daily Analysis for August 14, 2013

Daily chart: CL is forming a lower high pattern, below the resistance level at 106.70. Is likely that the CL will find resistance at this level, however, there is also the possibility that it may break, because the CL is very strong in its current bullish trend. If the CL manages to break that level, it is expected to rise to the level of 109.93. For the CL is very important you leave the range that is now, because in the long term, this does not have a very clear trend. The MACD indicator is extremely oversold and showing a lot of weakness in any bearish force that could arise in the CL.

 

H4 chart: The CL is maintained above the 200 day moving average and is approaching the resistance at 107.44 level. If this manages to break that level, it is expected to rise to the level of 108.76. On the other hand, it is very likely that the CL fall back to support at 105.61 level, but this fall it would be for a bullish rebound and further strengthen the bullish trend of the moment. However, if the CL achieved in breaking the support level at 105.61, it is expected to drop to the level of 104.09. The MACD indicator is in extreme overbought and entering neutral territory.

 

H1 chart: The CL has a strong bullish rebound on Point of Control (POC) near the support at 106.02 level. For this reason, it is very likely that the CL continue above the SMA 200, at least for the remainder of the week. If the CL managed to break the resistance level of 106.84, it is expected to rise to the level of 107.82. On the other hand, although not likely, if the CL manages to break the support at 106.02 level, would be expected to fall to the level of 105.50, which houses the 200 day moving average. The MACD indicator remains in negative territory, so we must be cautious.

 

Fundamental outlook: For today’s session, will be published the Crude Oil Inventories (Previous: -1.3M) at 14:30 GMT in the United States.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the CRUDE OIL breaks a bullish candlestick; the resistance level is at 106.82, take profit is at 107.82, and stop loss is at 105.87.

Source: www.instaforex.com

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