FX.co ★ CRUDE OIL: Daily analysis for June 14, 2013

Daily chart: Crude Oil rose back up to resistance at the 96.73 level. Now CL is slightly below that level if CL manages to break that level, it would be expected that the resistance rises to the level of 100.33. This resistance in the 96.73 level is very strong and very important, as we have said in previous articles, because CL has not been able to exceed this level and always makes a bearish rebound at that level. If in the today's session, CL does a bearish rebound at that level, it would be expected to fall back to the support at the 94.46 level. The overall outlook for CL is still bullish, because the current price is above the 200-day moving average. Recall that if CL 96.73 overcomes this resistance, it would be the best to put buy orders and avoid making trading against the main trend. The MACD indicator remains in positive territory.

H4 chart: Above the current price of Crude Oil, there are many bearish trend lines by strong support on CL, so it would be very difficult to break these levels during today's session, due to lack of fundamental news that may have considerable impact on Crude Oil. On the other hand, if Crude Oil makes a bearish rebound at current levels, it would be expected to fall to support at the 94.69 level, which is the 200-day moving average. The MACD indicator remains in positive territory and still shows no signs of overbought at the moment.

H1 chart: We must pay attention to the strong Point of Control (POC) that has formed near the 95.80 level. CL is above this POC and 200-day moving average, so that the bullish trend is very clear, in the short term. Now, CL is forming a lower high pattern and if CL breaks the resistance level at 96.97, it is expected to rise to the level of 97.61. On the other hand, if CL breaks the support at the 95.55 level, it is expected to fall to support at the 94.82 level, something that will be very difficult for CL to make in today's session due to strong POC doing support about it. The MACD indicator is in extreme overbought, so we must be careful with the CL, to do intraday trading for today's session.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the Crude Oil breaks with a bullish candlestick, the resistance level is at 96.97, take profit is at 97.61, and stop loss is at 96.34. Place sell (short) orders only if the GBP/USD pair breaks with a bearish candlestick, the support level is at 95.55, take profit is at 94.82, and stop loss is at 96.31.