In the early American session, the Crude Oil, #CL, is trading at 68.80 above the 21 SMA and above the 8/8 murray, with a bullish bias, but showing signs of an imminent correction in the next few hours.
Russian Deputy Prime Minister Alexander Novak said on Thursday that they will decide on OPEC + 's oil production strategy for August at the next meeting, Reuters reports.
Oil prices reflect the balance between supply and demand, Novak added, saying they expect to see a seasonal increase in oil demand in the third quarter of the year.
In the chart, you can see the formation of fractals in the area of 69.30 and 68.75, which represents a zone of strong resistance, and there could be a change in trend in the medium term. Since it is above the 4-hour SMA, a consolidation below this zone (68.40) could see a drop to the 64.60 zone, the 200 EMA level.
The technical reading of the eagle indicator is showing overbought levels as the moving line of the indicator has reached the 95-point zone after a long time. It means an imminent downward correction in the next few hours.
Our recommendation is to sell below $68.75, because 8/8 of murray is located there. It is a zone of strong reversal. If Crude oil #CL breaks down and consolidates below this level, we expect a downward movement to 67.21 zone of 7/8 of Murray.
Support and Resistance Levels for June 03 – 04, 2021
Resistance (3) 70.44
Resistance (2) 69.71
Resistance (1) 69.23
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Support (1) 68.21
Support (2) 68.02
Support (3) 67.29
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