Crude Oil, (#CL) opened the trading week with a bullish GAP. Since the Asian session, it has been rising, approaching 7/8 of Murray located at 84.38. The Eagle indicator has touched the level of 95 on the daily chart which is a signal of an imminent technical correction that may occur in the coming days.
Last week, the US crude inventories data was published. It showed an increase of 6.1 million. Amid this report, the Crude fell to the level of 80.50, but it was not enough, since the next day the market resumed its bullish movement and closed the week at 82.22.
At this time of writing, it was trading at 83.57. In view of the fact that the Eagle indicator has touched an imminent correction level, our forecast is to sell below 83.57 or if there is a pullback towards the 84.38 level of 7/8 Murray, targeting the closing of the GAP at 82.22 and up 6/8 Murray at 81.25.
A break and consolidation below 6/8 of Murray may lead to a fall to the support of 78.12 where 5/8 of Murray is located. It will be a good point to buy again. A little lower the SMA of 21 (76.94) is located, and it could offer immediate support to crude.
The Eagle indicator is a very valuable tool to determine when a market has reached extreme overbought or oversold conditions. In our case, the level of 95 gives us a signal that the downward movement may occur in the next few hours, as the market is overbought.
Support and Resistance Levels for October 18 - 19, 2021
Resistance (3) 86,39
Resistance (2) 84,43
Resistance (1) 83,78
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Support (1) 83,12
Support (2) 82,68
Support (3) 81,58
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A trading tip for CRUDE OIL for October 18 - 19, 2021
Sell below 83,57, with take profit at 82,22 and 81,25 (6/8), stop loss above 84,01.
The material has been provided by InstaForex Company - www.instaforex.com