CRUDE OIL Daily Analysis for August 09, 2013

CRUDE OIL: Daily Analysis for August 09, 2013

Daily chart: The CL again found support in the level of 103.85. As we have said before, if the CL manages to break that level, we would expect it to drop to the level of 100.33. On the other hand, it is very likely that the CL carry out another bullish rebound in this support and if it succeeds, it is expected to rise to resistance at 106.70 level. For now, it appears that the bearish trend is very strong in the CL, but we must be alert to any change in trend. The MACD indicator is in negative territory.

 

H4 chart: The CL has made a bullish rebound on the support at the level of 102.68 and the SMA 200. Now, the CL is trying to break the resistance at the 104.09 level and if it succeeds, would be expected to rise to the level of 105.61. On the other hand, if the CL makes a bearish rebound at current levels would be expected to fall to the level of 102.68. It is very likely that the CL has changed its bullish trend, however, we must be pending before any continuation of the current trend bearish. The MACD indicator is in neutral territory and showing extreme oversold levels.

 

H1 chart: The CL continues to consolidate down, but during the yesterday’s session, the CL made a bullish rebound near support at 102.88 level. Now, the CL is trying to climb to the resistance at the 104.71 level, after having overcome resistance at 104.00 level. If the CL managed to break the resistance at the 104.71 level, it’s expected to rise to the level of 105.50, very close to the 200 day moving average and the Point of Control (POC), which makes these strong resistance levels . Furthermore, if the support CL manages to break at the level of 104.00, it is expected to drop to the level of 102.88. The MACD indicator remains in positive territory and showing some weakness in the current trend bullish

 

Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the CRUDE OIL breaks a bearish candlestick; the support level is at 104.00, take profit is at 102.88, and stop loss is at 105.14

Source: www.instaforex.com

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