Crude oil: Mathematical analysis with Murray Lines for November 11, 2013
November 11, 2013 4:15 pm
Monthly chart
After being bearish for two weeks Crude Oil is leaning on its weekly Pivot at 94.28 after leaving a minimum at 93.08 and after finishing with a slight rise last Friday.
The U.S. Labor Department on Friday reported that the economy added 204,000 jobs in October despite the government shutdown. That was double Wall Street’s forecast.
The much better-than-expected jobs growth brightened the outlook for energy demand. But the jobs report, “while better than expected absolutely brings back on the table all the taper talk,” said Tariq Zahir, managing member of Tyche Capital Advisors. The strong jobs report raised the possibility that the Federal Reserve may decide to cut back its bond-buying program, which could dull demand for oil.
Your S – 1 per month is at 93.34, and if it exceeds in the coming days, a support around 90.00 dollars a barrel should be expected.
Weekly chart
Moreover, in the weekly chart we see that Crude Oil is in an oversold area because on the one side it is finding support on line 7/8. While a reverse trend becomes a resistance line it is however weak when the price stops at these levels, thus there is a possibility of reversion. Consequently, in this case an important support should be also considered. On the other hand, there is also the fact that at this time the price is on the bottom line of its uptrend channel and even if the price falls below the line of 7/8 this week, it finds a support in the area of 90.00 dollars, which constitute only a widening of its trend channel.
Daily chart
Finally, we can see that Crude Oil has found support on line 2/8 (red line) of Murrey found in 93.75, which has not been exceeded during the previous days and at this time the price is above this price. Considering that according to the theory of Murrey lines, this area of 2/8 is an important line of support and possible reversal, it is also very close to have a trend line and then observing the trend notice oscillator which is in oversold areas. Technically, we can expect a bullish rebound above 93.75, placing our stop loss at 150 pips so that it is below the last low point with a potential gain of 600 pips to the line 4/8 (blue line).
If you have any questions or suggestions, please contact me right through: Email:[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
Monthly chart
After being bearish for two weeks Crude Oil is leaning on its weekly Pivot at 94.28 after leaving a minimum at 93.08 and after finishing with a slight rise last Friday.
The U.S. Labor Department on Friday reported that the economy added 204,000 jobs in October despite the government shutdown. That was double Wall Street’s forecast.
The much better-than-expected jobs growth brightened the outlook for energy demand. But the jobs report, “while better than expected absolutely brings back on the table all the taper talk,” said Tariq Zahir, managing member of Tyche Capital Advisors. The strong jobs report raised the possibility that the Federal Reserve may decide to cut back its bond-buying program, which could dull demand for oil.
Your S – 1 per month is at 93.34, and if it exceeds in the coming days, a support around 90.00 dollars a barrel should be expected.
Weekly chart
Moreover, in the weekly chart we see that Crude Oil is in an oversold area because on the one side it is finding support on line 7/8. While a reverse trend becomes a resistance line it is however weak when the price stops at these levels, thus there is a possibility of reversion. Consequently, in this case an important support should be also considered. On the other hand, there is also the fact that at this time the price is on the bottom line of its uptrend channel and even if the price falls below the line of 7/8 this week, it finds a support in the area of 90.00 dollars, which constitute only a widening of its trend channel.
Daily chart
Finally, we can see that Crude Oil has found support on line 2/8 (red line) of Murrey found in 93.75, which has not been exceeded during the previous days and at this time the price is above this price. Considering that according to the theory of Murrey lines, this area of 2/8 is an important line of support and possible reversal, it is also very close to have a trend line and then observing the trend notice oscillator which is in oversold areas. Technically, we can expect a bullish rebound above 93.75, placing our stop loss at 150 pips so that it is below the last low point with a potential gain of 600 pips to the line 4/8 (blue line).
If you have any questions or suggestions, please contact me right through: Email:[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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