The Crude Oil #CL, in the Asian session, is trading below the SMA of 21 and in the same zone of the 8/8 of Murray, with a bearish bias, after having broken the uptrend channel in a 4-hour chart. #CL is getting ready for a move lower to the 7/8 murray zone around 67.19.
Crude Oil has strengthened to reach the area of the psychological level of 70.00 due to expectations of better demand and the Organization of Petroleum Exporting Countries this has given it a strong boost, but later in the American session yesterday it fell to the 69.00 zone, as part of a take profit.
Meanwhile, on Monday, OPEC Secretary General Mohammad Barkindo said that OPEC expects inventories to fall further in the coming months. This could give more demand to crude oil and therefore raise prices.
Also, the global demand for crude oil, in particular Brent, is expected to increase since little by little the United States and Europe could remove the coronavirus restrictions and this will also give it greater demand.
According to the fundamental analysis, we note that the market is being optimistic and believes that crude could continue with its upward cycle and reach the area of $ 75 per barrel.
However, technically, we believe that before further bullish momentum to challenge the psychological barrier of 70.00, there could be a correction to the 200 EMA zone located at 65.50. This level will give traders a good chance to buy at lower prices and sustain purchases with targets at 70.00 and 75.00 in the medium term.
In the short term, we recommend selling below the SMA of 21 and below the 8/8 of murray. If there is a pullback towards the 69.50 area, it will also be a good opportunity to sell with targets at 67.19.
Support and Resistance Levels for June 08 – 09, 2021
Resistance (3) 70.43
Resistance (2) 69.81
Resistance (1) 69.37
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Support (1) 68.31
Support (2) 67.69
Support (3) 67.28
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Trading tip for Crude Oil, #CL for June 08 - 09, 2021
Sell below 68.75 (8/8 of murray), with take profit at 68.31 and 67.19 (7/8), stop loss above 69.25.
Sell if pullback 69.50 (Trend Line), with take profit at 68.75 and 67.19 (7/8), stop loss above 70.00.
