Crude oil managed to remain within the uptrend channel formed since August 4. During Monday's Asian session, it consolidated around the lower band of the uptrend channel and experienced a strong technical rebound. Crude oil resumed its uptrend above $81.25 and is likely to continue rising in the coming hours.
Crude oil reached its July 31 high around $84.65 and is technically very close to retesting that level. Therefore, we believe that if the price breaks through and surpasses $84.065 in the coming hours, we could expect it to quickly reach the 6/8 Murray level around $87.50 and might even reach the upper band of the uptrend channel around $88.90.
In the event of a technical correction and if the price consolidates above $83, we could expect a technical rebound around the lower band of the uptrend channel, which could be considered an opportunity to open long positions.
Only a decisive break below the uptrend channel and consolidation below the 5/8 Murray level would lead us to expect crude oil to fall in the coming days until it reaches the key $75 level, around the 4/8 Murray level.
The Eagle indicator is showing a negative signal. Hence, we believe a good idea to sell would be to wait for the price to reach the 6/8 Murray level or for a decisive break below the uptrend channel.
