Daily chart
Crude Oil rose more than $2.70 a barrel after the announcement of the Fed deciding to keep the amount of your economic stimulus, after a drop in U.S. crude stocks. "The oil market reacted strongly, when it was on the upward slope after the release of oil reserves."
Crude oil reserves fell more than expected last week in the United States, according to weekly figures released this Wednesday by the U.S. Department of Energy. These stocks decreased by 4.4 million barrels to 355.60 million during the week ended September 13. It was estimated a decline of 1.2 million barrels. "The impact (of continued Fed program) is lower for oil than for equities, but the policy of the Fed lowers the dollar, that indirectly expensive barrel"
Therefore, we see that already during the first hours of trading for the day of Thursday, as crude oil rose about 30 pips from the opening, which, however, will be limited at 109.38 where the yellow line of 7/8 is placed.
H4 chart
The 4-hour chart shows we can see that Crude Oil, following the bullish rally Wednesday, currently based on its trading range in this case, is located at 108.59 (green line). Since this area has become a major area of resistance and 108.96 noting also that in the second line is a top of its trading band, is very likely that today the crude oil to back up to at least 106.25 in its downtrend. It came after the last zone acting as support, so giving a new opportunity to enter the market by buying.
H1 chart
The 1 hour chart shows an overbought area as even it is about to surpass the second top line of his band of gravitation. For what seems an interesting area to get short-term selling a pretty tight stop loss at 109.30, and a potential gain of 200 pips and could eventually place a pending order to buy at 106.25.
If you have any questions or suggestions, please contact me right through:
Email:antonio.inga@analytics.instaforex.com
DISCLAIMER
No information published constitutes a solicitation, offer, or recommendation, to buy or sell any investment instrument, to effect any transactions, or to conclude any legal act, whatever its nature. The information published and opinions expressed are provided on an only for information only and is subject to change without notice, delimiting the company responsibility for decisions originating from the same, and they cause any kind of profit, loss or damage.