On Friday last week, Crude oil (#CL) broke the secondary bearish channel that was formed within the main bullish channel. The break above this bearish channel is a sign of a further bullish movement so that the price could reach resistance of 7/8 of murray located at 73.44.
The Organization of Petroleum Exporting Countries (OPEC) published in its monthly report that crude oil production increased by 150,000 bpd in August to 26.76 million bpd. OPEC maintains its forecast for oil demand growth for the full year 2021 practically unchanged at 5.96 million bpd.
The price of crude oil continues to rise after this report. Meanwhile, it is trading above the psychological level of 70.00. Now it is at 70.78, showing a bullish bias, the immediate resistance is located at 71.88.
According to the 4-hour chart, it is observed that crude oil maintains its uptrend channel intact. Therefore, a technical rebound towards the 200 EMA located at 68.75 will be a good opportunity to buy with targets at 71.88.
The outlook remains bullish as long as the price remains above the 21 SMA, the 200 EMA and above the 4/8 murray. The price of Crude is expected to continue its rise to the key resistance zone and reversal level of 73.44.
On the contrary, a sharp break below 68.75 will indicate a bearish scenario, so the price could fall to the 2/8 murray support located at 65.62. The eagle indicator is showing a bullish signal, but approaching overbought levels.
The overall strategy for trading crude oil in the coming days will be to continue buying. A rebound at the level of 70.31 or 69.50 will be the key points to continue buying with targets at about 71.88. If the bullish pressure prevails, it will be a good point to buy above 71.88 with targets at 73.80.
Crude oil has left a GAP at 73.80 on July 30. If crude consolidates above 72.00, the price is likely to cover this gap and thus end its upward cycle. We just have to wait for this consolidation and operate according to the trend.
Support and Resistance Levels for September 14 - 15, 2021
Resistance (3) 72.68
Resistance (2) 71.88
Resistance (1) 71.23
Support (1) 70.31
Support (2) 69.78
Support (3) 69.02
Trading tip for Crude Oil for September 14 - 15, 2021
Buy above 70.31 or 69.50 with take profit at 71.78 and 73.80 (7/8), stop loss below -50 pips.
Buy if the price rebounds at 68.75 with take profit at 70,78 and 71.88 (6/8), stop loss below 68.25.The material has been provided by InstaForex Company - www.instaforex.com