In the early American session, Crude oil (#CL) is trading at 83.03. After having recorded a new high at 83.94, it is now consolidating on the 1-hour chart below the 21 SMA. This is a sign that a bearish move could occur in the next few hours towards the support of EMA 200 located at 81.25.
Since October 11, Crude Oil has been trading within an uptrend channel, therefore a correction at the bottom of the channel could give us an opportunity to buy with targets at 84.38, where 7/8 of Murray is located.
On the other hand, if the downward pressure increases and it consolidates below the 200 EMA and below the 6/8 Murray in a 1-hour chart, then it will be an opportunity to sell with short-term targets up to 78.12. At this level, 5/8 of Murray is located which represents a range zone.
Our forecast in the next few hours is to sell below 83.21, or at this very moment to sell around 83.03 with targets at 81.25. If this level breaks, we can continue to sell with targets at 78.12 (5/8).
The oscillator of the Eagle indicator had broken its bearish channel for a few hours, but now it is observed that it has returned below this, which means that a bearish movement may occur in the next few days.
Support and Resistance Levels for October 21 - 22, 2021
Resistance (3) 85,53
Resistance (2) 84,54
Resistance (1) 83,99
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Support (1) 81,66
Support (2) 81,25
Support (3) 80,80
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A trading tip for CRUDE OIL for October 21 - 22, 2021
Sell below 83,21 (SMA 21), with take profit at 81,66 and 81,25 (6/8), stop loss above 83,60.