The barrel of WTI crude oil traded under the #CL symbol rose from the low of 65.13 registered this week to the level of 68.8. Now it is making a correction and consolidating above the support of 2/8 of Murray and below the resistance of 4/8 of Murray.
The level of 65.00 has become the key level, and a break below it may extend the decline to the psychological level of 60.00.
According to daily charts, crude oil has made a technical rebound above 65.00 for the second time. Since the 2/8 of Murray is also located there, this will be the support or floor for buyers to take control of demand.
We believe that in the medium term, crude could fall to the support level of 55.00 and up to 50.00 dollars per barrel due to the fact that the FED plans to reduce asset purchases. President of the Federal Reserve Bank of Atlanta Raphael Bostic said that the Fed could begin to reduce asset purchases between October and December.
According to the 4-hour chart, we can see that crude oil has made a break in the downtrend channel, this downward sequence began on July 30 from the 74.00 level and took it to the minimum of 65, more than 900 pips in 10 days.
Now we can see that crude oil is likely to make a pullback to confirm the break. The level of 66.65, will be a key support zone. A technical rebound at this level could give crude oil an upward momentum to challenge the resistance zone of 4/8 Murray (68.75).
Another additional data that we can observe in the 4-hour chart is that crude has strong resistance in the area near 68.75 (4/8). This is the key level a sharp break of which may drive the price to rise to the psychological level of 70.00.
Therefore, while crude oil remains and consolidates above the 21 SMA in a 4-hour chart, the outlook will continue to be bullish with short-term targets up to the 200 EMA located at 71.80.
Support and Resistance Levels for August 11 - 12, 2021
Resistance (3) 70.28
Resistance (2) 69.39
Resistance (1) 67.97
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Support (1) 67.07
Support (2) 65.66
Support (3) 64.77
