Daily chart: CL made a bullish rebound at 106.70 support level, but this movement is not final, because CL may eventually break that support level. Furthermore, CL is forming a lower high pattern to continue rising and reach the resistance level at 109.93. If CL manages to break that level, it is expected to rise to the level of 116.24. Recall that the MACD indicator is in extreme overbought and entering negative territory, which could indicate a possible change in trend, but this is not definitive and we should expect more conformations.
H4 chart: CL is trying to break the resistance at the 107.44 level and if it succeeds, it is expected to rise to the level of 108.78. On the other hand, it is very possible that CL falls to support at 104.41 level. CL is still very bullish, but this is within a range that generates a lot of volatility, so we could see unusual movements during the rest of this week. The MACD indicator is in negative territory, but is showing signs of oversold, so CL could further strengthen its bullish trend.
H1 chart: CL bounced off the 200-day moving average and managed to break the resistance at 106.84 level. Now, at current levels a Point of Control (POC) is forming. If CL manages to break the resistance level of 107.82, it is expected to rise to the level of 108.25. On the other hand, if CL manages to break the support at the 106.84 level, it is expected to fall to the level of 105.50, which is unlikely for this week, due to the strength that has had this pair in the last hours. The MACD indicator remains in positive territory and still shows no signs of extreme overbought. However, this is showing some weakness in the bullish trend of the moment.
Fundamental outlook: For today's session, Crude Oil Inventories will be published (previous: -2.5m / forecast: -6.9M) at 14:30 GMT in the United States.
Trading recommendations for today: Based on the H1 chart, place buy (long) orders only if CRUDE OIL breaks a bullish candlestick, the resistance level is at 107.82, take profit is at 108.25, and stop loss is at 107.43.
