FX.co ★ Crude oil: mathematical analysis with Murray Lines for December 03, 2013

Weekly chart

Crude oil started the week with more than 130 pips higher. This scenario came after manufacturing data from China which has provided vital support for crude oil and there is some optimism that an increase in manufacturing activity will further support the demand for oil.

HSBC’s monthly survey of China’s manufacturing sector came in at 50.8 in November, up from an initial estimate of 50.4 and almost unchanged from 50.9 in the previous month. The results of the manufacturing purchasing managers index, released Monday by HSBC and Markit, showed the fourth straight month of rising production with the growth at its fastest rate since March.

Thus, the CL presents a new scenario that we had until the close of last Friday, standing now back above its weekly pivot and also on the line 7/8.

Daily chart

Meanwhile, on the daily chart we can also see that the Crude Oil, following the bullish session to session on Monday, finished closing above line 2/8 lines Murrey, the same is considered as an important line of reverse resulting in this area range from late October on which the price has been fluctuating CL entire month of November. Hence, the bullish candle this day could be the beginning of an upturn that could occur during December. Moreover, both the oscillator and the oscillator strength of this trend give us perspective and we believe that there are conditions to enter long positions with minimal risk to about 30 pips below 93.75.

4 hour chart

Finally, in the 4 hour chart after entering your area range after bullish yesterday and supported by its uptrend line, the Crude Oil entered above the line 4/8 (blue line) that was actually apart from being a neutral line. It also has become an important line of support and resistance; the CL at this time is above this line enabling us to make the outlook that bullish trend predominates, although for further confirmation the price should penetrate the line 5/8 (green line) which will become the top line of your range trend. According to lines indicated above, we can enter long positions above this level of 93.75 with a maximum risk of 60 pips.

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