FX.co ★ Crude oil: Mathematical Analysis with Murray Lines for January 16, 2014

Daily chartВ 

The Light crude oil rose 1.7 per cent today and closed at 94.34 dollars per barrel after the announcement on the sharp decline in crude oil reserves in the United States during the last week.
Buyer activity in the market was highly favored today by the announcement of the Department of Energy that oil reserves fell by 7.7 million barrels (2.1%) last week, compared to the forecast of 1.6 million that will descend. In addition, the sharp increase in manufacturing activity in the region of New York in the month of January announced today suggests a recovery of the industry and a greater consumption of crude oil, which also pushed up the contracts.
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Weekly chartВ 

However, in spite of this strong rise of more than 160 pips, when we look at the weekly chart, we noticed that the crude oil is still in area of sale, since it has notВ  been able to enter within their channel of trend while it is true that is already at its first monthly support, the volume of sellers still remains high, and the oscillator also has bearish trend. Therefore, we suggest caution and although it is likely to end the current week with a bullish candle, we don't have much to enter buying.
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4-hour chartВ 

Finally in the 4-hour chart we see two scenarios. The first one may be that the time to overcome its first weekly resistance that is at 94.51 to about 25 pips of the current price, the light crudeВ  also continue to climb today.
The second possible scenario is that to be found at this time below the resistance in addition below the top line of the trend channel prices are pushed even beneath 93.75 (blue line) with which the predominant trend would continue to be bullish.
Therefore, we do not suggest any operation to this day.

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