Daily chart: The CL made a strong bullish rebound in the 103.85 support level, making of the CL, in an asset very difficult to negotiate at the moment, because this is kept within the range between 106.70 and 103.85 levels. If the CL manages to break the support level of 103.85, it is expected to drop to the level of 100.33. Furthermore, the CL may rise to the resistance level at 106.70. For now, we recommend extreme caution with the CL, because of this indecision I have about it. The MACD indicator remains in negative territory.
H4 chart: As in the daily chart, the CL performed a bullish rebound at the 104.09 level, very close to the 200-day moving average and now, the CL is trying to consolidate above that. If the CL manages to break the resistance at the 105.61 level, it's expected to rise to the level of 107.44 and that bullish trend could continue for much longer. Furthermore, if the CL manages to break the support level of 104.09, it is expected to drop to the level of 102.68, which would initiate a solid bearish trend in CL. The MACD indicator is in positive territory, which could support a bullish outlook in the CL.
H1 chart: The CL is still moving in a very dangerous range, which generates a lot of volatility and for this reason, the current trend in the CL not defined. If the CL manages to break the support level of 104.00, it is expected to drop to the level of 102.88. On the other hand, if the CL manages to break the resistance level at 106.82, which would be expected to rise to the level of 107.82, which could strengthen the bullish trend of when the CL. The MACD indicator is in extreme overbought and entering neutral territory, so we must be very cautious.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the CRUDE OIL breaks a bearish candlestick; the support level is at 104.00, take profit is at 102.88, and stop loss is at 105.10.
The material has been provided by InstaForex Company - www.instaforex.com