Daily chart: CL is forming a possible higher low pattern, below the resistance level at 106.70. If CL manages to break the support level of 103.85, it is expected to drop to the level of 100.33. It is very possible that CL is trying to change its general trend, since this formed a fractal near resistance at 109.93 level. On the other hand, if CL manages to break the resistance level at 106.70, which would be expected to rise to the level of 109.93. The MACD indicator is in extreme overbought and entering negative territory, which could strengthen a future bearish trend in CL.
H4 chart: CL is maintained above the 200-day moving average, but now it is forming a higher low pattern. If CL manages to break the support at the 104.41 level, is expected to fall to the level of 102.01, which houses the 200-day moving average. On the other hand, if CL suceeds to make a bullish rebound this support level, it is expected to rise again until the resistance level 107.44. The MACD indicator is in extreme oversold, which could hinder the development of a bearish trend in CL, at least, for today's session. We recommend caution with CL in this chart.
H1 chart: CL is maintained below the 200-day moving average, but it is very possible that CL moves up to the resistance at 106.84 level, where there is a Point of Control (POC). Furthermore, it is advisable to follow the trend in this chart and if CL achieves in breaking the support level of 104.71, it is expected to drop to the level of 104.00. On the other hand, we must bear in mind that CL may be changing its general trend to a bearish trend and this is supported by the MACD indicator which is showing extreme overbought levels, so we must be careful when to place buy orders in CL, for today's session.
Trading recommendations for today: Based on the H1 chart, place sell (short) orders only if the CRUDE OIL breaks a bearish candlestick, the support level is at 104.00, take profit is at 102.88, and stop loss is at 105.11.
