Weekly charts
Today, we begin a new week full of macro-economic data that will surely affect the market which can easily carry crude oil prices to the levels of 112.50 dollars per barrel. Having fluctuated above and below the line level +1 / 8 in the price of 106.25 during the previous weeks, beginning the first day of this last week at this time listed on 107.03 and above the line +1 / 8 (purple line) considered an extreme level of contribution. But having found significant support around 103.95 which houses its S-1 Weekly, the outlook appears continue to be optimistic for the bulls.
Global tensions continue to support prices even though Libya was able to start exports once again. Apparently the market has discounted the possible effects of the U.S. Fed and now is ready to move according to supply and demand.
Daily chart
In 1-day charts, crude oil trend channel shows a clear upward trend has found significant support around 103.13 where the green line 5/8 is located. It will be the top line of its trading range. Crude oil has tried to overcome it several times but without success. At this moment in this time frame the line 106.95 on 6/8 (red line) is considered to be a strong point of reversal. The next target would be at 7/8 and is often considered as a weak line of resistance, the upward trend would continue until 112.50.
4H chart
Finally, in 4-hour charts we can see that crude oil opens after a gap of almost 60 pips. Now it is trading below its trading range bounded by the line 5/8 (green line) which could eventually take it to a retraction to the line 4/8 or even the basis of its trading range located in 3/8 to make a push towards the boost as mentioned in the previous review, which could be extended in the first tranche to 109.38.
Based on our analysis of the three graphs:
Our recommendation for today, Monday August 26 is:
Buy above 105.47
Take profit at: 109.00
Stop loss at: 105.20
For minimum risk of handling 1-1
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Email:antonio.inga@analytics.instaforex.com
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