FX.co ★ CRUDE OIL: Daily analysis for August 01, 2013

Daily chart: CL made a strong bullish rebound near support at 103.85 level. It is very likely that CL achieves up to resistance at 106.70 level, but this does not rule out the formation of a higher low pattern, to continue the current trend bearish in CL. Furthermore, if CL manages to break the support level of 103.85, it is expected to continue to fall to the level of 100.33. For now, we must be careful with CL and it is not advisable to place orders in this range, if you think do swing trading. The MACD indicator remains in negative territory.

H4 chart: CL continues to climb and managed to break the resistance at the 104.09 level, after this have made a bullish rebound near the 200-day moving average and support at 102.01 level. If CL manages to break the resistance level of 105.61, it is expected to rise again until the resistance level at 107.44. On the other hand, if CL again manages to break the support level at 104.09, it would be expected to fall to the level of 102.01. The MACD indicator remains in positive territory, which would support our bullish outlook.

H1 chart: CL is consolidating above the 200-day moving average and above the support at 104.71 level. If CL manages to break the resistance level of 105.50, it is expected to climb to the level of 106.02. Now, CL is forming a lower high pattern and it is very possible that CL continues to strengthen its current bullish trend. However, if CL again manages to break the support level of 104.71, it is expected to drop to the level of 104.00. The MACD indicator is entering extremely overbought levels and is showing a lot of weakness in the current bullish trend.

Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the CRUDE OIL breaks a bullish candlestick; the resistance level is at 102.88, take profit is at 102.15, and stop loss is at 104.96.