Crude oil is trading around $100.24, pulling back after reaching the upper band of the uptrend channel that has formed since October 5.
Crude oil reached strong resistance levels around the psychological level of $100, which also coincided with the 8/8 Murray line, but it may struggle to continue rising since it is technically in an overbought zone and could see a technical correction in the coming days toward the lower band of the uptrend channel around $97.
If crude oil falls below the psychological $100 level in the coming hours, this could be considered a selling opportunity with targets at 98.35—around the 21 SMA—and it could even reach the lower band of the uptrend channel. If a break occurs in this area, it could reach $95, which represents strong weekly support.
A technical rebound above $95 or $97 could be seen as a positive signal to buy in the coming days, with targets at $100 and $102.75, and finally, we expect it to reach the +1/8 Murray level around 106.25.
The Eagle indicator is showing a negative signal, so we believe crude oil could continue to fall in the coming hours; we should monitor the 8/8 Murray level in case the price undergoes a technical correction.
Given that the trend for crude oil remains bullish, a technical correction could present an opportunity to take long positions; therefore, we should keep an eye on the support levels of 97 or $95 to buy crude oil again.
