FX.co ★ The crude oil: mathematical analysis with Murray Lines for January 07, 2014

Daily Chart

Despite very few movements, the Light crude oil continued the first day of the week with his bearish streak intending to close even below the 8/8 line (blue line), the same as its last line of support according to the lines of g, Murrey J math. However, at this point it is also the central line of their channel of the same trend that comes to be a support, from which the prices of the CL can roll back and continue descending.

4-Hour Chart

On the 4 hour chart, we can see that both the oscillator of strength and the oscillator of trend are in overbought levels, which should bring the prices to take a respite from the constant falls experienced during the previous week. Although it could eventually continue falling to 92.19, it is more likely that the prices will first bounce at least to 95.30.

1-Hour Chart

In the 1 hour chart, we can see that the prices of crude oil continued falling below the bottom line of their channel of upward trend. All this happened despite the fighting in Fallujah (Iraq), 50 kilometers from Baghdad, so you can generate uncertainty about the crude oil market before the risk of disruption in the supply of oil from the Middle East. For this reason we believe that the black gold must undergo a reverse at least up to the 96.00 dollars a barrel before a possible continuation of its downtrend.

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