Daily chart: The CL is breaking the resistance at 103.85 level, if successful, it's expected to rise to the level of 106.70. Above this resistance, the CL will try to form a lower high pattern and continue rising. However, keep in mind that the CL has had a very bullish week and it is most likely that the CL enters a phase of low range movements, so we recommend to be cautious. The MACD indicator remains in a positive territory, but it is already showing the signs of extreme overbought and weakness in the bullish trend, although the CL maintains above the 200 day moving average.
H4 chart: In this chart, the CL is respecting the bullish trend line there near the current price of the CL. It is likely to fall back to the support at the level of 102.01 and if this does break, it is expected to drop to the level of 100.78. On the other hand, if the CL achieved in break the bullish trend line, it's expected to rise to the level of 108.10. For now, the general outlook remains bullish CL as soon as this is maintained above the 200 day moving average. The MACD indicator remains in neutral territory.
H1 chart: Near the psychological level of 103.00, has formed a Point of Control (POC). The current position of this POC, indicating that the CL could continue its bullish trend in the short term and now the CL is forming a lower high pattern above the 104.00 level. If the CL managed to break the resistance level of 104.71, it is expected to rise to the level of 105.50. Furthermore, if the CL manages to break the support at the level of 104.00, it is expected to drop to the level of 102.88. The MACD indicator is in an extreme overbought.
Fundamental outlook: For today's session, the Crude Oil Inventories will be published (Previous: -10.3M / Forecast: -2.9M) at 14:30 GMT in the United States.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if the CRUDE OIL breaks with a bullish candlestick, the resistance level is at 104.71, take profit is at 105.50, and stop loss is at 103.95.
