31.12.202116:17 Forex Analysis & Reviews: Trading signals for Crude Oil (WTI- #CL) on December 31, 2021: sell below 76.40 (21 SMA)

The price of crude oil (WTI- # CL) is trading below the 21 SMA and above the 200 EMA, showing signs of exhaustion. Since the beginning of the week, it has been hovering below 77.00. The price fixation below the 21 moving average and a technical correction are likely to take palce in the coming days towards the 200 EMA located at 73.77.

Yesterday, crude prices remained higher as US crude inventories fell -3.6 million barrels, more than expected, which is a positive sign for demand.

However, it is technically overbought. A corrective moevement is expected in the next few hours only, if it remains below 76.40. A decline below the 21 SMA could ease upward pressure and give the market an opportunity to buy low with targets at 78.12 (5/8).

The main trend is bullish according to the daily chart. A trade through the intraday high of $77.00 will indicate a resumption of the uptrend. A downward move through 73.70 (200 EMA) will turn the main trend down. In this case, the price could fall in the short term to 2/8 Murray at 68.75.

The eagle indicator reached the extreme overbought level at 95 points which means that there could be an imminent correction in the coming days. Oil prices could fall to 3/8 of a Murray around 71.88.

Support and Resistance Levels for December 31, 2021

Resistance (3) 78.12

Resistance (2) 77.31

Resistance (1) 76.54

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Support (1) 75.67

Support (2) 75.00

Support (3) 73.72

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A trading tip for CRUDE OIL on December 31, 2021

Sell below 76.40 (21 SMA) with take profit at 73.77 (200 EMA) and 71.88 (3/8), stop loss above 77.20.