By Yan Petters – For the past 3 weeks crude oil prices have been fluctuating between $73.50 a barrel to $78.00 a barrel. This means that the market has acknowledged that for the time being, this price represents the real value of crude oil. Currently, crude oil is floating in the middle of the range, trading at $76.60 a barrel.
• The chart below is the crude oil 4-hour chart by ForexYard.
• The flat form of the MACD is a great reflection of the steady trading of crude oil. Once the MACD will begin moving towards a certain direction, it will signal that the range might be coming to an end.
• In the meantime, a bullish cross of the Slow Stochastic is indicating that crude oil might see a bullish move today.
• The next significant resistant level is located at the $77.15 price. If crude oil will cross the $77.15 level, it is likely to reach towards the $78.00 as well.
• If crude will fail to cross the $77.15 level, it might drop to the $76.00 support level.
• The next support levels are at the $75.50, $74.60 and $73.55 levels.
• Traders are also advised to pay special attention at 14:30 GMT, when the U.S. Crude Oil Inventories report is scheduled to be released. Usually this release creates heavy volatility in crude oil trading, and traders should be prepared.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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