FX.co ★ Crude oil - Mathematical analysis with Murray Lines for August 19, 2013

Daily Chart

Crude oil had a slightly bullish session during last Friday's session, thus closing its sixth day of bullish rally. However, it could not exceed the level of 108.00 and closed the session below 107.69. At this time it is at 107.40 with a downtrend and is located below the daily pivot. This could lead to retest the minimum reached during Friday's session at 106.56 which was very close to the line 6/8 (red line) Murrey, the same as at the moment has come to be a support that could propel it upward again to 109.38.
This is because the problems in the Middle East remain dormant. Although last Sunday Egypt's interim government held an emergency meeting with the army chief, General Abdel Fattah al-Sisi who promised to ensure the security of the state to further protests expected Morsi's followers.
Other supply-related issues also helped oil over the past week, treats including strikes at Libyan facilities and maintenance fields in the North Sea Brent crude.
However, the levels found at this time allow us to think we could begin to close the purchase positions and could have an address change if events point to a recovery in supply.

4-Hour Chart

The 4H chart trend channel shows the crude oil is in overbought area, ranging over several sessions of 4H candle between the top line of the trend range located in 5/8 (green line) and the line 6/8 (red line) which becomes significant resistance. So we must be alert to a possible breach of the top line of the trend channel and located on 107.81 might expect the crude oil look for new highs around 109.00 or 110.00.
On the other hand, placed below 107.03 it would be entering a sales area that could extend up to 105.00 or 104.00 dollars per barrel.

1-Hour Chart

Finally on the 1-hour chart we see the crude oil with a strong upward trend after the last two candles that line extended from 2/8 to 8/8 and there are conditions that you can easily extend this trend to the extreme line + 2/8, thereby beating the fence of 108.00, thus breaking the downtrend line that runs through this area.
But buying into positions in this area seems too risky, so for today's session we see conditions to recommend any entry point.