Crude oil (WTI) is trading around $64.56 with a negative bias after several attempts to consolidate above the 7/8 Murray.
Crude oil reached $67.18 per barrel on February 20, but was unable to break through this level. WTI attempted several times to break through the 7/8 Murray without success and fell to the 6/8 Murray around $65.62, breaking this support level. We expect the downtrend to continue.
Crude oil is expected to continue falling in the coming days until it reaches the 200 EMA, a level that coincides with the lower band of the uptrend channel around $63.00, or it could even reach the key support of the 4/8 Murray around $62.50.
A sharp break below the 4/8 Murray and below the 200 EMA could change the cycle for crude oil, and we could expect it to reach the psychological level of $60.00. WTI could even plunge to nearly $59.05, the levels of late January.
The Eagle indicator is producing a negative signal, so we will look for opportunities to sell WTI in case there is a pullback to the 6/8 Murray or towards the 21 SMA around $65.94.
