Crude oil is trading around $97.31, pulling back after reaching the psychological level of $100 during the European session; downward pressure is evident.
On Tuesday during the US session, crude oil fell from a high of 101.04 to a low of 95.03. Following this sharp move, crude oil rebounded toward $100, and we are now seeing it pull back again, which could be considered a selling opportunity.
In the coming hours, if crude oil consolidates below the 21 SMA around 98.05, the outlook could turn negative, and we could expect it to continue falling until it reaches the lower band of the uptrend channel at $94.10.
Conversely, if crude oil continues to rebound above $98, the outlook could remain bullish, and we could expect it to reach $100 or even the upper band of the uptrend channel around $102.20.
On the H4 chart, we can see that crude oil is within an uptrend channel; however, it has reached overbought levels, which is why we believe it could continue to fall in the coming days.
If crude oil reaches the $100 or $102 zone, it could be seen as an opportunity to sell. The Eagle indicator is giving a negative signal, which supports our bearish strategy.
