Technical Analysis

Crude Oil Futures (CL) Technical Analysis

Crude oil futures (CL) are flashing clear warning signs for traders based on key technical indicators and moving averages. Both oscillators and trend-following metrics point to a strong sell sentiment taking hold. A key support was also broken last week as CL is now trading for $78 per barrel.

RSI and Stochastics indicate oversold conditions and downward momentum. The RSI currently sits at 37, well below the 50 neutral mark, while Stochastics shows a reading of 23. Moving average crossovers are also bearish, with the 5, 10, 20, 50, and 100-day simple moving averages all trending below the 200-day MA on the daily.

11 out of 12 total moving averages compiled are flashing sell signals at the moment.

From here, CL is trading in a major support zone which needs to hold for bulls to have a chance moving forward. You can see in the chart below the support zone marked in green which stretches back to August of this year. If CL is not able to hold this level, we may see it fall all the way back down to $68.