Crude oil, after a day of indecision on Friday, on this first day of the week is moving towards lower prices within a range area. It has been moving between 103 and 109 dollars a barrel since joining this area in July of this year. As tensions in Syria continue to dissipate, traders turn to look at the situation in Libya where three ports remain closed to navigation containing oil exports. Investors hope that Washington and Moscow reached an agreement that will deliver Syria chemical weapons thereby avoiding an attack by U.S. forces.
Today will be announced the monthly industrial production and 0.5% is expected to be given which as expected could lead again Light crude prices to the levels of 109.00 and 106.25 around that have significant support.
The 4 hour chart shows Crude Oil entering a zone below 107.03 where the level of 5/8 (green line) which becomes the top line of its trading range, but very close to have the same line 4/8 (blue line) in this time frame becomes a major support line and we should expect a closure of at least one full sail four hours in order to enter with sales positions. Meanwhile, the outlook continued to be bullish as prices are still at their trendline in this direction.
In 1-hour chart Crude Oil is currently trading below the 2/8 (red line), an area of significant rebound and reversal. In turn it is also listed above the line eighth (yellow line). Therefore, we can see that it is an interesting area to go buying with a fairly tight stop loss below 106.25, because in this area there is the line 0/8 which would be its last support area in this time frame and would have a distance of about 260 pips with a risk of 70 pips from this area.
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