Trading Signal for Crude Oil, #CL, for August 06 - 09, 2021: Buy above 69.15

The crude oil market is under downward pressure after having rebounded from a low of 65.05 on July 20 to a high of 74.20 on July 30.

In 10 days, crude made a strong technical rebound of more than 900 pips, now it is trading around 68.98. In 6 days, it has fallen about 500 pips.

This proves that the market for crude oil has strong volatility due to the projection of OPEC and its allies. They agreed to scale up its crude production from August.

On Wednesday, data on crude inventories in the US was released. The report showed an increase of +3.6 million barrels in the week ending July 30.

The market reacted negatively and the price of crude oil quickly fell below the psychological level of 70.00. This is a sign that in the coming weeks crude oil could continue its bearish cycle.

The price of crude oil had a very strong bullish streak. The market was overbought for several weeks. Now it is likely that in the short term WTI price will fall to the 65.00 zone and up to 60.00. Some analysts believe that this will be the trading range until the end of year.

At a technical level, Crude oil #CL is trading within a downtrend channel formed in 1-hour charts. A sharp break above the top of the channel could be a bullish signal.

Crude Oil is located above the SMA of 21 and above the 4/8 of murray, which means that there could be a break in the bearish channel in the next few hours. If Crude consolidates above 69.15, it will be a bullish signal with targets at 70.31 and up to the 200 EMA located at 71.46.

Conversely, if crude consolidates below the 4/8 murray line located at 68.75, it will be a sign of a downtrend continuation, and we can sell with targets at 67.19 (3/8). The eagle indicator is showing bullish signal.

Support and Resistance Levels for August 06 - 09, 2021

Resistance (3) 71.49

Resistance (2) 70.41

Resistance (1) 69.75

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Support (1) 68.68

Support (2) 67.83

Support (3) 67.20

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Trading tip for Crude Oil for August 06 - 09, 2021

Buy if breaks above 69.15 (4/8) , with take profit at 70.31 and 71.46 (EMA 200), stop loss below 68.70.

Sell below 68.72 (4/8), with take profit at 67.19 (3/8), stop loss above 69.10.

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

from RobotFX