The price of Crude Oil (WTI / # CL) is trading below the psychological level of 70.00, after having touched the strong resistance of 70.31 and the 5/8 murray line. This level has acted as a barrier for crude oil, below this level the downward pressure has intensified because in the last hours we saw a retreat towards the support of 68.24.
After having found support at the 68.24 level, the price is bouncing and has returned to above the 200 EMA and above the 4/8 Murray. At this level, we can expect a technical rebound with targets towards the top of the main bearish channel.
The main downtrend line will be strong resistance for crude oil. Since July 1, crude has been under downward pressure and since there it has been making lower lows. The price is now above the 21 SMA that could be a sign a further bullish move.
Since August 27, Crude Oil has been trading firmly above the 21 SMA, now still holding above this level. This is a sign that a bullish movement could occur to the level of 73.44. There you may notice that Crude Oil has left a GAP, and could even cover this gap.
Our outlook will remain bullish as long as crude is trading above the 21 SMA around 67.19. So, we can buy with targets at 70.31 and 71.88.
Below 67.19, there could be a sharp decline and a trend reversal in Crude Oil. Bearish pressure could carry it to the 65.62 support and up to the 200 EMA located at 62.50.
The technical reading of the eagle indicator is showing signs of a bullish rebound, although with a low trade volume. After having reached the level of (10) on August 20, the bullish movement is now likely to continue.
Support and Resistance Levels for September 07 - 08, 2021
Resistance (3) 70.64
Resistance (2) 70.05
Resistance (1) 69.42
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Support (1) 68.20
Support (2) 67.61
Support (3) 66.98
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Trading tip for Crude Oil, September 07 - 08, 2021
Buy above 68.75 (4/8), with take profit at 70.31 (5/8) and 71.88 (6/8), stop loss below 68.35.
Buy if oil rebounds at 67.19 (SMA 21), with take profit at 68,75 and 70.31 (5/8), stop loss below 66.70.