Trading Signal for Crude, Oil #CL, for September 01 - 02, 2021: Sell Below 68.75 and buy above 67.19 (3/8)

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According to a daily chart, Crude Oil #CL is trading below the strong resistance of 68.75 within an uptrend channel. The break of this channel below 68.70 could trigger a fall to support of 67.19, the level of 21SMA.

Crude oil remains below the psychological level of 70.00, consolidating below 68.75 in response to the headlines about OPEC +. Now energy investors are anticipating the outcome of the meeting that will take place today at 15.00 -5GTM.

Before this meeting to decide on oil production policy, OPEC and its allies (OPEC +) made upward revisions to their forecast for oil demand for 2022 to 4.2 million barrels per day (bpd), versus the previous forecast of 3.28 million bpd.

No doubt, volatility could increase in the next few hours for the WTI or #CL. As long as the price remains below the 4/8 murray line, there could be a technical correction towards the 67.19 support. If crude makes a technical rebound off this level, it will be a good opportunity to buy.

Conversely, a consolidation above 68.75 could push the price up to the psychological level of 70.00, so oil could hit the 5/8 murray line at 70.31. Therefore, if crude trades above this level, we can buy.

Our outlook is bearish for crude, given that this last daily candle that is still in progress has left a wick above 68.75. At the time of writing this article, oil is trading below the 4/8 line, supported by the bearish signal of the eagle indicator.

The technical reading of the eagle indicator in daily charts is showing a bullish signal. Nevertheless, it is likely that there will be a correction for a new bullish wave. Hence, a key point to buy crude again will be the level of 67.19. Below this level, we must avoid buying.

Support and Resistance Levels for September 01 - 02, 2021

Resistance (3) 70,31

Resistance (2) 69,53

Resistance (1) 69,14

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Support (1) 67,99

Support (2) 67,58

Support (3) 67,19

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Trading tip for CRUDE OIL for September 01- 02, 2021

Sell below 68,75, with take profit at 67,99 and 67,19 (3/8), stop loss above 69,20.

Buy in case of a bounce around 67,19 with take profit at 67,70 and 68,75 (4/8), stop loss below 66,80.

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

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