FX.co ★ Silent-person | CL/Crude Oil

Support Levels The primary support zone is located at 73.95 – 74.94, which represents the recent swing low region. The level 74.94 is the higher end of this cluster (also the closing price), while 73.95 is the ultimate line of defense shown on the chart. A secondary support lies at 75.50, which previously acted as a reaction point during the descent. Given the downtrend from 87.90 down to 73.95, any bounce from this zone must hold above 73.95 to prevent further losses toward 73.00 (not shown but implied). The level 77.05 also offers minor support. Resistance Levels The most significant resistance is at 87.90, which is the swing high and the primary bull barrier. Below that, 86.35 and 84.80 form the immediate resistance levels. The cluster around 74.63 – 75.15 (including 74.84 and 74.94) is the near-term ceiling – if price can reclaim above 75.15, the first target for buyers would be 75.50. The level 77.05 and 78.60 are intermediate resistances that price must clear during any corrective bounce. Until price breaks above 75.15, the broader trend remains bearish. Trading Plan Given the clear downtrend and price trading near the lower end of the range, two approaches exist. For aggressive traders, a long bounce can be attempted on a confirmed hold above 74.63 with a stop loss below 73.95 (e.g., at 73.50), targeting 74.94 and then 75.50. For trend-followers, the preferred strategy is to wait for a pullback to 77.05 – 78.60 and enter short, with a stop loss above 80.15, targeting a retest of 75.50 and then 74.94. A break below 73.95 would signal further downside toward 73.00. Risk to Reward Ratio For the short setup: assuming an entry at 77.05, a stop loss at 78.00 (0.95 points risk – for CL, 1.0 = $1), target at 75.50 gives 1.55 points reward (77.05 - 75.50 = 1.55), yielding a 1:1.63 risk-to-reward ratio. Target at 74.94 gives 2.11 points reward, yielding a solid 1:2.22. For the long setup at 74.63 with a 0.68-point stop (to 73.95) and first target at 74.94 (0.31 points reward), the ratio is poor at 1:0.46, but to 75.50 (0.87 points reward) it improves to 1:1.28. The short on strength offers better numbers for larger targets. Summary Crude Oil on the H1 timeframe is in a strong downtrend, having fallen from 87.90 to the current support zone at 73.95 – 74.63. The bias remains bearish as long as price stays below 75.15. Traders can either buy the bounce near support for a scalp to 74.94–75.50, or wait for a retrace to 77.05 – 78.60 to enter short targeting the lows. A decisive break below 73.95 would accelerate selling toward 73.00, while a break above 80.15 would be needed to question the downtrend. For now, shorting on strength remains the higher-probability strategy.