CRUDE OIL: Daily analysis for August 09, 2013

[Mr. Job]

Daily chart: CL again found support at the level of 103.85. As we have said before, if CL manages to break that level, we will expect it to drop to the level of 100.33. On the other hand, it is very likely that CL will carry out another bullish rebound in this support and if it succeeds, it is expected to rise to resistance at 106.70 level. For now, it appears that the bearish trend is very strong on CL, but we must be alert to any change in the trend. The MACD indicator is in negative territory.









H4 chart: CL has made a bullish rebound at the support level of 102.68 and the SMA 200. Now, CL is trying to break the resistance at 104.09 level and if it succeeds, we will expect a rising to the level of 105.61. On the other hand, if CL makes a bearish rebound at current levels it will be expected to fall to the level of 102.68. It is very likely that CL has changed its bullish trend, however, we must be pending before continuation of any bearish direction of the current trend. The MACD indicator is in neutral territory and showing extremely oversold levels.









H1 chart: CL continues to consolidate down, but during the yesterday's session, CL made a bullish rebound near support at 102.88. Now, CL is trying to climb to the resistance at 104.71, having overcome resistance at 104.00. If CL manages to break the resistance at 104.71, it is expected to rise to the level of 105.50, very close to the 200-day moving average and the Point of Control (POC), which makes these strong resistance levels . Furthermore, if the support on CL manages to break at the level of 104.00, it is expected to drop to the level of 102.88. The MACD indicator remains in positive territory and showing some weakness in the current trend bullish.









Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if CRUDE OIL breaks a bearish candlestick; the support level is at 104.00, take profit is at 102.88, and stop loss is at 105.14

The material has been provided by InstaForex Company - www.instaforex.com

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