Since the beginning of the week, Crude Oil (#CL) has been falling, trading below 7/8 of murray (84.38). Yesterday in the American session, it fell below the SMA of 21, located at 83.39. Currently trading at 82.36, WTI is approaching the bottom of the uptrend channel.
A technical bounce is expected at the uptrend channel support. WTI could return to the 21 SMA located at 83.39. If it manages to break above this level, it will face strong resistance at 84.38. A consolidation at this level may push WTI quickly to the 8/8 murray resistance located at 87.50.
Conversely, a sharp break below the uptrend channel formed on 4-hour charts may accelerate the decline of Crude to the key 6/8 murray support at 81.25. If bearish pressure prevails, it could drop to the 200 EMA located at 78.95.
Investors are very cautious about the announcement of the Fed regarding its monetary policy planned for 2:00 p.m. on the afternoon of the American session. Investors expect the Federal Reserve to announce the reduction of its monthly 120,000 million bond purchases. This decision could benefit the US dollar and crude oil would fall to the support of the 200 EMA around 79.00.
In the next few hours, in the American session the crude oil inventories update will be published. 1.9 M barrels are expected to remain in the inventories. If the data shows a figure above this level, it could be a negative signal for crude. It could drop to the support at 81.25. On the contrary, if the data is below this level, it will give a strong upward impulse to crude oil and WTI could reach 84.38.
The eagle indicator is showing a bearish signal. Only the break below 82.00 could confirm the decline to the support at 81.25 and to the 200 EMA at 78.95.
Support and Resistance Levels for November 03 - 04, 2021
Resistance (3) 84.38
Resistance (2) 83.42
Resistance (1) 83.12
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Support (1) 81.94
Support (2) 81.25
Support (3) 80.85
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A trading tip for CRUDE OIL for November 03 - 04, 2021
Buy above 82.30 (uptrend channel) with take profit at 83.39 (SMA 21) and 84.38 (7/8), stop loss below 81.90.
The material has been provided by InstaForex Company - www.instaforex.comfrom RobotFX
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