Crude Oil (WTI- #CL) opened this week with a bearish GAP around 73.71. At this time, it is trading below the 200 EMA located at 73.12 and it is likely that under this zone there will be downward pressure. That is why the price could reach the 21 SMA located at 72.11.
Lat week, WTI had a strong bullish rally and gained approximately 780 pips? rising from the low of 66.12 - 73.93. This week, it is likely to make a technical correction. As it is trading below the 200 EMA, a technical correction is expected. However, the price may decline to the support of 2/8 Murray around 68.75.
Crude oil is likely to be under downward pressure this week due to some headlines as published by Bloomberg: where it mentions that the Japanese Ministry of Commerce announced earlier today that it is releasing oil from its national reserves in a coordinated effort with the United States to contain oil prices.
On the other hand, if crude consolidates again above the 200 EMA and trades above this level, it is likely that the bullish force will continue to prevail. The price may close the gap at 73.71 and could quickly reach the resistance and psychological level of 75.00 (4/8).
The eagle indicator is showing a bearish signal. It is highly possible that there will be a low volume and lack of liquidity due to the holidays. Therefore, it is possible that crude oil will trade sideways these days.
Our trading plan is to watch the key level of 73.12, below we can sell with targets at 68.75. A close on the 4-hour chart above this zone will be time to buy with targets at 73.71 and 75.00.
Support and Resistance Levels for December 27 - 28, 2021
Resistance (3) 75.00
Resistance (2) 74.34
Resistance (1) 73.30
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Support (1) 72.68
Support (2) 71.88
Support (3) 71.40
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A trading tip for WTI on December 27 - 28, 2021
Buy above 73.20 (200 EMA) with take profit at 73.71 (GAP) and 75.00 (4/8), stop loss below 72.80.
