For Traders

Analytical Reviews

Stock Markets

27.07.202116:45 Forex Analysis & Reviews: Trading Signal for Crude Oil, #CL, for July 27 - 28, 2021: Sell Below $71.66

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

West Texas Intermediate (WTI) also known as Crude Light (#CL) has been trading these days below the 200 EMA. The crude is in a consolidation phase due to the fact that major oil exporters agreed to begin increasing output rates to 4 million barrels per day. This could be accumulating global supply for a fall in the short term.

In addition, in light of this news, oil prices reacted negatively, falling to the low of 65.62, the area of the 2/8 Murray support. Now it is showing signs of being overbought, although the bullish force still prevails.

In the chart, we can see the formation of a technical pattern, Crude #CL, to break and consolidate below the SMA of 21 around 71.66. There could be a downward movement to the 4/8 murray around 68.75.

On the contrary, a consolidation above 72.18 may have a strong impulse towards the resistance zone of 73.44. At this level a downtrend channel converges.

Our recommendation is to sell below 71.66 with targets at 68.75, on the contrary to buy above 72.18 with targets at 73.44. The eagle indicator is showing a slightly bearish signal.

Support and Resistance Levels for July 27 - 28, 2021

Resistance (3) 73.56

Resistance (2) 72.87

Resistance (1) 72.47

----------------------------

Support (1) 71.01

Support (2) 70.52

Support (3) 69.86

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.