Oil is trading below the strong resistance of 6/8 Murray located at 81.25. From the annual high of 82.16 registered on October 11, it has been consolidating above the SMA of 21. It is likely that in the coming days there may be an upward movement only if the price trades above 81.25.
From October 6 to October 11, there was a bullish wave forming the flagpole of the bullish pennant pattern. From October 11 to 14, the flag is forming. This technical figure is almost complete. It could be a sign of a bullish move in the next few days. Only if it breaks above this pattern and consolidates above 81.25, the oil price may rise to 7/8 of Murray located at 84.38.
Instead of a daily close below the 21 SMA located at 80.57, the price may fall to the support of the bullish channel around 78.80. If the bearish force prevails and the price fixes below 5/8 of Murray, it could be a sign of a trend reversal and could fall to the support of the 200 EMA located at 74.36.
On the other hand, a daily close above 81.60 level of the SMA of 21, the break of the technical bullish pennant pattern may be confirmed. The price is likely to resume its main trend until the top of the bullish channel at 83.20 or up to 7/8 of Murray at 84.23.
Our forecast for crude oil is seen on the neutral side. We do not see any clear signal for the next move. Only if it trades below the SMA of 21, it will be a good point to sell with targets at 78.80 and up to 78.12 (5/8).
Support and Resistance Levels for October 14 - 15, 2021
Resistance (3) 83,34
Resistance (2) 81,95
Resistance (1) 81,27
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Support (1) 79,66
Support (2) 78,73
Support (3) 78,05
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A Trading tip for CRUDE OIL for October 14 - 15, 2021
Sell below 80,57 (SMA 21) with take profit at 78,73 and 78,12 (5/8), stop loss above 81,05.
