Crude Oil: Mathematical analysis with Murray lines for August 12, 2013
August 12, 2013 8:30 am
Weekly Graphic
Crude oil seen in weekly charts, is trading at 105.86 at the moment, after having done a significant rebound during the session last Friday as a result of reports about China’s industrial production and a surge in demand forecasts global international Energy Agency, which has allowed the light crude cut its weekly loss since in this day snapped a five-day losing streak.
But even with all according to Murrey lines at this point is below line +1 / 8 (magenta line) extreme overshoot line, and under a trading band located at 107.57, which makes us think that there have been depleted bulls to result in a downtrend already.
Dayli Graphic
Similarly, in 1-day charts we can see that crude oil is below the line of 6/8 (red line) of Murrey lines being reversing from this important point.
We can also see in the line chart, the price is decreasing from mountains forming after trying to overcome line 7/8 last month. To beat the price of 106.25 in the coming days the trend could continue to be bullish, but while the price remains below this level, we believe that we have a good opportunity to get below 106.25 selling at moderate risk.
Graphic 4 Hours
The four-hour graph also allows us to see depletion in the upward trend since line 4/8 (blue line) is at 106.25 which is a very important offensive line that comes here to be also resistance to take into account for crude oil.
Therefore, a candle closing below 3/8 (green line) which becomes the basis of its trading range in this time frame, would confirm a possible change in trend that could lead crude oil down again, with the first goal and then continue falling to 103.91 and to 102.34 inclusive in the coming days.
h
Therefore, our recommendation for Monday August 12 is:
Sell below: 106.25
Stop loss at: 107.45
Take profit 1:103.90
Take profit 2:102.30
The material has been provided by InstaForex Company – www.instaforex.com
Weekly Graphic
Crude oil seen in weekly charts, is trading at 105.86 at the moment, after having done a significant rebound during the session last Friday as a result of reports about China’s industrial production and a surge in demand forecasts global international Energy Agency, which has allowed the light crude cut its weekly loss since in this day snapped a five-day losing streak.
But even with all according to Murrey lines at this point is below line +1 / 8 (magenta line) extreme overshoot line, and under a trading band located at 107.57, which makes us think that there have been depleted bulls to result in a downtrend already.
Dayli Graphic
Similarly, in 1-day charts we can see that crude oil is below the line of 6/8 (red line) of Murrey lines being reversing from this important point.
We can also see in the line chart, the price is decreasing from mountains forming after trying to overcome line 7/8 last month. To beat the price of 106.25 in the coming days the trend could continue to be bullish, but while the price remains below this level, we believe that we have a good opportunity to get below 106.25 selling at moderate risk.
Graphic 4 Hours
The four-hour graph also allows us to see depletion in the upward trend since line 4/8 (blue line) is at 106.25 which is a very important offensive line that comes here to be also resistance to take into account for crude oil.
Therefore, a candle closing below 3/8 (green line) which becomes the basis of its trading range in this time frame, would confirm a possible change in trend that could lead crude oil down again, with the first goal and then continue falling to 103.91 and to 102.34 inclusive in the coming days.
Therefore, our recommendation for Monday August 12 is:
Sell below: 106.25
Stop loss at: 107.45
Take profit 1:103.90
Take profit 2:102.30
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: