Crude oil: Mathematical analysis with Murray lines for August 12, 2013
August 12, 2013 3:30 pm
Weekly Chart On weekly charts, crude oil is trading at 105.86, after having undergone significant rebound during the last Friday’s session. It was due to the reports of China’s industrial production and a surge in demand forecast by global international Energy Agency, which has allowed the light crude cut its weekly loss since in this day it snapped a five-day losing streak. But even according to Murrey lines, it is below the line +1/8 (magenta line) extreme overshoot line, and under a trading band located at 107.57, which makes us think that there are already depleted bulls which result in a downtrend.
Daily Chart Similarly, in 1-day chart we can see that crude oil is below the line of 6/8 (red line) Murrey lines. We can also see in the line chart the price is decreasing after trying to overcome the 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.
4-Hour Chart
The 4 -hour graph also allows us to see a depletion in the upward trend since the line 4/8 (blue line) is at 106.25 which is a very important offensive line that comes here to be also a resistance. 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 to crude oil again moves down, with the first goal and then continue falling 103.91 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
Weekly Chart
On weekly charts, crude oil is trading at 105.86, after having undergone significant rebound during the last Friday’s session. It was due to the reports of China’s industrial production and a surge in demand forecast by global international Energy Agency, which has allowed the light crude cut its weekly loss since in this day it snapped a five-day losing streak.
But even according to Murrey lines, it is below the line +1/8 (magenta line) extreme overshoot line, and under a trading band located at 107.57, which makes us think that there are already depleted bulls which result in a downtrend.
Daily Chart
Similarly, in 1-day chart we can see that crude oil is below the line of 6/8 (red line) Murrey lines.
We can also see in the line chart the price is decreasing after trying to overcome the 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.
4-Hour Chart
The 4 -hour graph also allows us to see a depletion in the upward trend since the line 4/8 (blue line) is at 106.25 which is a very important offensive line that comes here to be also a resistance.
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 to crude oil again moves down, with the first goal and then continue falling 103.91 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
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