FX.co ★ Crude oil: Mathematical analysis with Murray lines for November 14, 2013

Daily chart

Crude Oil failed to overcome the limit of 93.75 where the line 2/8 (red line) of Murrey lines were lying during yesterday's session. Although at some point, the price was above that level, yet prevailed sales force to finally close below that level. For the next hour it is scheduled to publish weekly inventories from the Energy Information Administration (EIA), and it is expected to be 0.7 M, although some analyst believe that these stocks could end at 1.8 million barrels, which certainly could push prices even below the current leading it to skirt the 90.00 dollars per barrel.

H4 chart

In the 4 hour chart we can also observe Crude Oil trades below a downtrend line and below the line 2/8 (red line). While there is next support where the minimum was reached during the meeting yesterday, it is likely to get them again a new low below this level, which occurs after the publication of inventories and this is most than expected most likely carry prices to its next support is at 90.63.

H1 chart

Finally the 1-hour chart shows us the Crude Oil is within a sales region, after having entered below the neutral line 4/8 (blue line), although the current candle seems to have found support for its line of upward trend, however as the most likely scenario is that this line ends up being violated and the prices falls below 93.36 where the line 3/8 (green line) is, which is the basis of its trading range; which would be confirming the continued pressure bears could extend below 92.00 in this time frame and even to the 90.00 area as the previous graphs.

Therefore, our suggestion is to sell below 93.75 with a stop loss of at least 120 pips, since it is likely to be volatile after the publication of weekly inventories.

If you have any questions or suggestions, please contact me right through:

Email:antonio.inga@analytics.instaforex.com

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