Crude oil: mathematical analysis with Murray lines for December 18, 2013
December 18, 2013 8:30 am
Daily chart
As far as we can see, the crude oil found strength during the second trading day this week in the daily pivot. However, it is not far from the bottom of trading range as the line becomes 3/8 (green line) Murrey lines. Plus, between this line and the top of the trend channel, we have the triangle that becomes narrower and is likely to come out these days so that we will be able to observe a definite trend. Meanwhile, we can go long while the price is above this line, but should place the stop not far from this level in order to minimize risks.
4-hour chart
In the 4 hour chart, we have the crude oil trading above the neutral line 4/8 (blue line) which indicates that the trend continues to be upward. Also, it converges with the bottom line of the trend channel so we might expect it to find the area of consolidation in this zone. However, it can plummet below the line 4/8 and break the double support which could lead to CL at the line 2/8 (red line), although this scenario is unlikely.
1-hour chart
Finally, in the 1 hour chart we can see that crude oil is being supported by the line eighth (yellow line) that is the same as on the 200 period moving average. Therefore, since the price is in this time frame, the line is ascending from the extreme 1/8. It might also mean the price will continue to rise at least to 98.44 where the 4/8 Murrey line is. However, if the price falls below the uptrend line and below support to 97.00, which is a new medium, we can expect it to place around 96.09 where it can finally find the end line -2/8. So if we buy at these levels, our stop loss should be no more than 60 pips.
If you have any questions or suggestions, please contact me at:
No information published constitutes a solicitation, offer, or recommendation, to buy or sell any investment instrument, to effect any transactions, or to conclude any legal act, whatever its nature.
The information published and opinions expressed are provided on an only for information only and is subject to change without notice, delimiting the company responsibility for decisions originating from the same, and they cause any kind of profit, loss or damage.
The material has been provided by InstaForex Company – www.instaforex.com
Daily chart
As far as we can see, the crude oil found strength during the second trading day this week in the daily pivot. However, it is not far from the bottom of trading range as the line becomes 3/8 (green line) Murrey lines. Plus, between this line and the top of the trend channel, we have the triangle that becomes narrower and is likely to come out these days so that we will be able to observe a definite trend. Meanwhile, we can go long while the price is above this line, but should place the stop not far from this level in order to minimize risks.
4-hour chart
In the 4 hour chart, we have the crude oil trading above the neutral line 4/8 (blue line) which indicates that the trend continues to be upward. Also, it converges with the bottom line of the trend channel so we might expect it to find the area of consolidation in this zone. However, it can plummet below the line 4/8 and break the double support which could lead to CL at the line 2/8 (red line), although this scenario is unlikely.
1-hour chart
Finally, in the 1 hour chart we can see that crude oil is being supported by the line eighth (yellow line) that is the same as on the 200 period moving average. Therefore, since the price is in this time frame, the line is ascending from the extreme 1/8. It might also mean the price will continue to rise at least to 98.44 where the 4/8 Murrey line is. However, if the price falls below the uptrend line and below support to 97.00, which is a new medium, we can expect it to place around 96.09 where it can finally find the end line -2/8. So if we buy at these levels, our stop loss should be no more than 60 pips.
If you have any questions or suggestions, please contact me at:
[email protected]
DISCLAIMER
No information published constitutes a solicitation, offer, or recommendation, to buy or sell any investment instrument, to effect any transactions, or to conclude any legal act, whatever its nature.
The information published and opinions expressed are provided on an only for information only and is subject to change without notice, delimiting the company responsibility for decisions originating from the same, and they cause any kind of profit, loss or damage.
The material has been provided by InstaForex Company – www.instaforex.com
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