Technical Analysis

Crude Oil Futures (CL) Technical Analysis


Crude Oil consolidated last week after a huge drop the week prior, where one barrel dropped almost $15 in that period. Let’s take a look at the technicals and price levels for both bears and bulls.

Technical Analysis

The upward-sloping trend line mentioned in the previous CL technical article is still intact but barely. The price is hovering on the line, and it is unclear if the bears or the bulls will come out victorious. Price is also hovering on the 38% Fib line if we measure it from the high back in July of last year.

If price rallies from here, bulls should take note of the reading the RSI gives to monitor if there is bearish divergence.

The 100 MA is acting as support currently as well.

The point of control line is currently at $80. To get this, I measured also from the high made in July of last year. That is a lot of trading data, and it means that there is likely a higher-than-normal amount of demand at that price level due to the high liquidity.

Levels To Watch

Bears can keep an eye on the POC as their main short-term target and main profit-taking zone. They should note, however that even after the large drop in the price, CL still seems to be in the bull’s control at the moment. If CL starts moving above $91 then the bearish case gets very weak.

For bulls, as long as price remains above $82 and doesn’t close below it on the daily, they are still in control. Their first target would be the swing high at $95.03 and then the psychological $100 level. If price falls from here to around $82, there is a possibility to take a long on a false break candle/bear trap. Learn how over here.

There is no need to force any positions at the moment as there is no real high probability play on the cards. Remain patient and wait for the direction to present itself.