- Crude Oil technicals show price is still stuck inside a wide range for 2023.
- CL is currently trading within a resistance zone.
- Potential short trade opportunity.
The resistance zone we analyzed last week has finally been hit as the bulls pushed the price up 22% since its recent local low made in June. Crude has largely been stuck in a range between $67.26 and $80.74 for the entire year as we eagerly await the potential break out. The question is whether we will get that the break or if CL will continue doing what it’s doing and drop back down to the mid 60’s now.
I have left the chart plain and simple for this week’s CL technical analysis because the price action speaks for itself. The resistance that CL is currently trading inside of could hold enough selling pressure for us to see the price fall again, and this gives a high risk-reward ratio short trade to potentially take.
Setting stops above $85.66 is the max the market should run against us in this trade.
The RSI is overbought at this point, and because we are in a range-bound market, we can look at it as an indicator that we don’t want to take longs in overbought territory. If CL was in a trending market environment, then it could take the RSI overbought as a buy signal.