Trading Signal for Crude Oil, #CL, for August 03 - 04, 2021: Sell below 71.88

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According to a 4-hour chart, the Crude Oil #CL is trading below the 200 EMA and below the strong resistance of 6/8 murray located at 71.88.

The outlook remains bearish. There could be a deeper decline in the coming days to the support zone of 68.75 (4/8) and 65.62 (2/8 of murray).

The psychological level of 70.00 is the key. The market does not want to move away from this level whether it rises or falls. It is a reference level. However, it could happen that every time there is a fall, due to the downward pressure. The market tries to bounce towards the 70.00 area.

The negative and disappointing PMI data from China and the US have sparked fears of a slowdown in the economic recovery and therefore lower consumption of crude oil.

We must also remember that the agreement reached between the Organization of Crude Exporting Countries and its allies (OPEC +) to increase the supply of oil by 400 thousand barrels per day (bpd) starting from August could push oil prices to the bearish pressure for a long time.

Therefore, since the outlook will continue to be bearish for crude oil, we must watch the key level of 73.00. Tthere is the EMA of 200. Below that level, we can sell with targets at the support of 70.00 psychological level. In the medium term, we could continue selling until the support of 65.62.

The eagle indicator that measures market strength and a trading volume is showing a bearish signal.

Support and Resistance Levels for August 02 - 03, 2021

Resistance (3) 73.39

Resistance (2) 72.86

Resistance (1) 71.49

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Support (1) 70.03

Support (2) 69.20

Support (3) 68.61

The material has been provided by InstaForex Company - www.instaforex.com

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