Crude oil is trading around $84.34 within the uptrend channel formed since August 5, above the Murray 5/8 line and above the 21-period simple moving average (SMA), which is a positive sign; however, there are signs of exhaustion on the chart.
Crude oil could extend its uptrend if the price consolidates above $83. In this case, it could be expected to reach the Murray 6/8 level, around $87.50, and might even reach the upper band of the uptrend channel, around $90.
A decisive break below the uptrend channel and consolidation below $83 could trigger a rapid decline to the Murray 5/8 level, around $81.25. The price could eventually reach the 200 EMA, around $80.60.
A sharp break below the psychological $80 level could drive the oil price toward the Murray 4/8 level, around $75.
If oil reaches the strong resistance at the Murray 6/8 level, this could be considered a sell signal, as the Eagle indicator has reached overbought levels and is showing a bearish signal.
