The crude oil reached a peak of $ 46.20, leaving a double top after trying for two consecutive sessions to exceed this level. The rally is unfolding amid the prospect of an extension in the production cuts of the Organization of Petroleum Exporting Countries (OPEC). Yesterday, we noticed a pullback below this level to support at 44.70.
In the daily chart, according to the murray lines, we note that now crude is trading below the +1/8 overbought zone and an imminent decline, our perspective is to sell only if crude is trading below this murray line. We can sell the trading instrument with targets up to the daily uptrend channel.
This level that coincides with the trend channel (44.46) could give crude a bullish momentum to the levels of 46.20 and 48.88 (+2/8 of murray).
On the contrary, if the price breaks this level and makes a pullback, it will be a good time to sell crude, with targets up to 43.30, strong support and, 41.70 (21-day EMA zone).
The eagle indicator is giving an overbought signal and it is very likely that there will be a drop in crude oil for the next few days.
Market sentiment shows that there are 41% of investors who are buying crude, it is very likely that this percentage will rise in the next few days, this would support a price drop for the next few days.
Trading tip for CRUDE OIL for November 27 – December 04
Sell below 45.30 with take profit at 44.40, stop loss above 45.60
Sell with a convincing break below 44.30 (break out trend line) with take profit at 43.10, stop loss above 44.70.
Buy if rebound 43.50, with take profit at 44.40 and 45.30, stop loss below 43.00.
The material has been provided by InstaForex Company - www.instaforex.com