Crude oil (CL) futures
Technical Analysis

Crude Oil Futures (CL) Technical Analysis

Crude Oil Weekly Chart

The weekly shows significant support around the $67 level, which has been tested multiple times since mid-2021, establishing it as a ‘Huge Support’ zone. The volume profile on the left shows a lot of trading activity around these levels, painting the point of control within that support zone. Bears have not been able to push prices below this level. They need to do that if they wish to have a possible long-term bearish setup.

CL weekly chart with rsi and volume profile

Crude Oil Daily Chart

On the daily chart, we can see a gradual uptrend since December, with the Trend Magic line providing dynamic support on the way up. Even though there are higher highs and higher lows, the trend does not look significant and rather looks like the market has found its price. Once we see developments on the fundamental side, we will probably see CL pick a direction with more conviction, until then, range bound strategies could be the way to go.

Trading Opportunities:
Considering the strong support zone and the small ascending trend on the daily chart, a bullish bias seems reasonable. Potential trades could involve:

  1. Buying near the support level at $67 with a stop-loss placed below this zone to protect against a breakdown.
  2. Looking for breakout or pullback entries near the TM line on the daily chart, targeting the $80.99 level with a stop placed below the trend line to capitalize on the short-term uptrend.

Given the strong support, I would rate CL as a moderate to high-confidence bullish setup. Don’t chase the market, wait for it to give you what you are looking for.