Crude oil (WTI) is trading around $93.47, a level that coincides with the 21-day SMA and represents strong daily support. During the European session, crude oil reached a high of $99.60 near the psychological $100 level. Since then, it has been unable to break above this zone. Meanwhile, it is going through a sharp decline.
If crude oil consolidates below $93 per barrel in the coming hours, we could expect the downward trend to continue until it reaches the 7/8 Murray level around $87.50.
Given that crude oil has reached the 61.8% Fibonacci retracement level drawn from its high of $112 to the $74 level, WTI will likely continue to fall in the coming days, and as long as the price trades below the 8/8 Murray level, this will be seen as a signal to continue selling.
If crude oil finds strong support around $93.50, this could be seen as an opportunity to buy on a technical rebound, with targets at $96 and $99.
A pullback toward the psychological $100 level is expected. If the price fails to consolidate above this zone, it will be seen as a signal to open short positions with targets around $80.00.
