Crude Oil, #CL, is trading above the psychological level of $ 75.00. At the moment, it is located exactly at 75.28. We expect a retracement to the 61.8% Fibonacci for a downward correction to the 200 EMA zone located at 73.40.
The price of Crude Oil gained strong bullish momentum surpassing its multi-year mark and consolidating above 75.00, as OPEC seeks to ease production restrictions by a total of 2 million barrels per day from August to the year end.
On the other hand, the change in crude oil stocks in the US was -6.7 million barrels in the week ending June 25. This data was released on Wednesday, the market reaction was to continue buying more crude.
Now, the price of crude oil is at overbought levels. There could be a correction movement in the coming days to the area of the 200 EMA located at 73.50.
On the 1-hour chart, we have plotted the Fibonacci indicator, showing that crude could make a correction, only if it trades below 61.8% (75.59). At this level, we recommend selling
Also, a consolidation below the 21 SMA and below the 8/8 murray (75.00) will be a good opportunity to sell with targets at 73.50. The eagle indicator is showing a bearish signal.
Support and Resistance Levels for July 02 - 05, 2021
Resistance (3) 78.65
Resistance (2) 77.36
Resistance (1) 76.31
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Support (1) 73.48
Support (2) 72.98
Support (3) 71.73
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Trading tip for Crude Oil for July 02 - 05, 2021
Sell below 61.8% - 75.59, with take profit at 73.50 (EMA 200), stop loss above 75.95.
Sell below SMA 21 and 8/8 of murray (75.00), with take profit at 73.50, stop loss above 75.50.
