Daily Graphic
As expected Crude Oil got back the gains made during the session yesterday after falling nearly 300 pips from its peak at 108.97 giving us a new opportunity to enter purchase orders above the line 6/8 (red line) at the level of 106.25, because according to the theory of Murrey, this line is a strength of reverse and, since the price fell during the Thursday session, we consider it an important support area. The area also allows for a balanced benefit and risk management that we would place our stop loss at 104.70 for a potential gain of a similar journey.
However, the breakthrough of the bottom line of its trend channel would invalidate this scenario.
Graphics for 4 hours
The 4 hour chart shows that Crude Oil has found an important support line 0/8 (solid line) considered as a last line of support difficult to break. Although during the first 4 hours of negotiation it seems to be breaking this level, we must consider that there is a support 106.05 before the oil will probably have a new momentum to the upside to the line 2/8 (red line) 107.81
Graphic 1 Hour
Similarly, the 1 hour chart shows us the Crude Oil is on the line 0/8 (blue line). But we should also note that the price has reached the bottom line of its first range of gravity, which is usually an indication of a shift when the time range is formed.
Our recommendation: Based on the analysis of the 3 graphics, our tip for today:
Buy above: 106.25
Stop loss at: 105.66
Take profit at: 107.62
If you have any questions or suggestions, please contact me right through:
Email:antonio.inga@analytics.instaforex.com
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