In the American session, the Crude Oil, #CL, is trading near the zone of $74 a barrel, below the SMA of 21 in 1-hour charts. It is making a retracement after having formed a double top near the high of $74.44 level last seen in October 2018.
The bullish outlook for oil remains valid amid encouraging fundamental news. This week. OPEC and its allies are holding the regular meeting, the possibility of a delay in the supply of Iranian oil is perceived. Such prospects are favorable for oil prices and could take them up to the psychological level of $75 per barrel.
In the chart, we can see that the price of crude oil is consolidating below the SMA of 21, (74.01). This level is the key because below a correction could occur to the area of the EMA of 200 located at $72.50.
Crude oil remains within its uptrend channel, so the upward bias in the medium term will be that the price of oil continues to rise. Thus, it will be a good opportunity to buy if it bounces at the bottom of the uptrend channel with targets at $74.01 and $75.00 where 8/8 of murray is located.
The technical reading of the eagle indicator is showing a bearish signal. It is probable that at some point this week crude oil will make a correction to continue its upward climb.
Our recommendation is to sell only if crude consolidates below the SMA of 21 around $74.01, with targets at near $72.50. At this same level, it is possible to buy with targets at 75.00.
Support and Resistance Levels for June 28 – 29, 2021
Resistance (3) 75,77
Resistance (2) 75,04
Resistance (1) 74,45
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Support (1) 73,65
Support (2) 73,13
Support (3) 72,50