Crude Oil (WTI- #CL) is trading below the 21 SMA located at 71.80 and below the bearish channel formed since November 24 and below 3/8 Murray. Given that there is strong downward pressure around this area where the WTI is trading, it is expected that the next few hours there will be a downward movement to 2/8 Murray located at 68.75 and until it can cover the GAP that it left at 66.39.
The medium-term outlook according to the 4-hour chart is still bearish and with a possibility of a fall in the short term to the psychological level of 70.00 and 62.50.
Given that the WTI is below the 200 EMA and below the 21 SMA, everything indicates that in the coming days crude oil could continue with the downward movement and could fall to the support of 2/8 Murray at 68.75 and hit the monthly low of 62.50.
The eagle indicator is approaching the extremely overbought zone. Crude is likely to make a technical correction below the downtrend channel and we could see a bearish move in the coming days.
Our trading plan is to sell below 71.88 with targets at 68.75 and at 66.40 (GAP) the eagle indicator supports our bearish strategy.
Support and Resistance Levels for December 10 - 13, 2021
Resistance (3) 75.00
Resistance (2) 74.34
Resistance (1) 72.48
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Support (1) 69.54
Support (2) 68.49
Support (3) 66.60
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A trading tip for CRUDE OIL on December 10 - 13, 2021
Sell below 71.88 (3/8) with take profit at 68.75 (2/8) and 66.40 (GAP), stop loss above 72.40.
The material has been provided by InstaForex Company - www.instaforex.com