Daily chart: The Crude Oil stays above the 200-day moving average and is still respecting the bullish trend line. Days ago, the CL formed two fractal supports, indicating that the 200-day moving average's dynamic support is very strong in the Crude Oil. If the CL breaks the resistance level at 94.46, it would be expected to rise to the level of 96.73. On the other hand, if the CL breaks the support at the level of 92.79, which is also the 200-day SMA and the bullish trend line, it would be expected to drop to the level of 90.31. The MACD indicator is in negative territory and Crude Oil may move in low range during this week, due to small number of published economic data in the U.S. and Canada.
H4 chart: The Crude Oil is below the 200-day moving average, which is making very strong dynamic resistance on it as well. Last week, two fractal resistances above the 200-day moving average were formed, so it would be very difficult for the CL to break this resistance. I would recommend waiting for the formation of a higher low pattern above support level at 92.13 and a breakout of this support, to place sell orders in the Crude Oil. If the CL breaks this support, it is expected to fall to 89.36 level. On the other hand, if the CL breaks the resistance level at 94.97, it would be expected to rise to the level of 96.30. The MACD indicator remains in positive territory but with a tendency to go into neutral territory.
H1 chart: Since yesterday's session was very slow in the markets, Crude Oil remained in the range between 94.16 and 93.18. About 93.57 level, a Point of Control (POC) was formed, which is making support on CL. If the CL breaks the resistance level at 94.16, it would be expected to rise to the level at 94.82. On the other hand, if the CL breaks the support at the level of 93.18, it is expected to drop to the level at 92.42. The MACD indicator is in positive territory, but eventually this can change during the coming hours. The CL is maintained below the 200-day SMA, supporting a bearish outlook for Crude Oil in the coming hours.
Fundamental outlook: We must be very attentive to everything that happens in the Middle East, especially with the situations that arise in Syria and Lebanon. Particularly in Syria, there are concerns by the international community of a possible use of chemical weapons in the Syrian conflict. Moreover, the Israeli government investigates recent reports of possible explosions in the city of Metula, north of Israel, because of an alleged launch of a rocket from Lebanon. All these events, cause buy orders in the Crude Oil, due to the uncertainty that is created in this market, then remember that this geographical area is a very important step for the transport of oil in the world. For today's session in the United States, the CB Consumer Confidence (Previous: 68.1 / Forecast: 70.7) will be published at 14:00 GMT. If the current reading is higher than the forecast, the Crude Oil could perform bearish movements during the hour. Recall that yesterday it was a public holiday in the U.S., so this session is expected to be more volatile than usual, in the CL.
Trading recommendations for today: Based on the H4 chart, place sell (short) orders only if the Crude Oil breaks with a bearish candlestick, the support level is at 93.18, take profit is at 92.42, and stop loss is at 93.94. Place buy (long) orders only if the Crude Oil breaks with a bullish candlestick, the resistance level is at 94.16, take profit is at 94.82, and stop loss is at 93.51.