The WTI (#CL) is trading below the 21 SMA and below the downtrend channel. The market is putting downward pressure and is likely to continue its downward movement to 2/8 Murray at 68,75.
The uncertainty regarding the lethality of Omicron is significantly weakening demand for crude oil. This, in turn, slows down or limit crude oil profits.
Traders also expected an increase in supplies of 18 million barrels from their Strategic Petroleum Reserve scheduled for December 17. Obviously more supplies imply some downward pressure on crude prices, which could reach the support level of 65,62, just at that level the WTI left a bullish GAP.
According to the 4-hour graph, the formation of a diamond pattern is visualized. This technical figure appears when a trend ends and changes and it is possible to define the next market movement. A close on 4-hour charts below 71,00 will be confirmation to sell and could weaken crude towards 2/8 Murray.
A daily close above 72,50 would be a buy signal. Oil prices could rise to the 200 EMA located at 74,44 and up to the key level of 4/8 Murray at 75,00.
Our trading plan is to sell below 3/8 Murray located at 71,88 with targets at 68,75 and up to 1/8 Murray at 65,62. Conversely, a sharp break above 72,30 will be a positive signal to buy with targets at 75,00.
The eagle indicator has reached an extreme oversold level, and a technical correction in Crude Oil is expected in the coming days.
Support and Resistance Levels for December 14 - 15, 2021
Resistance (3) 74,83
Resistance (2) 73,90
Resistance (1) 72,55
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Support (1) 70,27
Support (2) 69,34
Support (3) 68,04
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A trading tip for CRUDE OIL on December 14 - 15, 2021
Sell below 71,88 (21 SMA) with take profit at 68,75 (2/8) and 65,62 (1/8), stop loss above 72,50.
The material has been provided by InstaForex Company - www.instaforex.comfrom RobotFX
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