FX.co ★ The Crude oil - Mathematical Analysis with Murray Lines for September 20, 2013

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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