USD/OIL is trading around $100.47, above the 21-day moving average and within the uptrend channel that has been forming since early October. The H4 chart shows a strong bullish trend.
CL attempted twice to break above $100 and, after a technical correction toward $95, produced a strong technical rebound, suggesting that further upside is likely in the coming days, toward $103.84 and potentially the +1/8 Murray level near $106.25.
Given that crude oil has upside potential, we could look for buying opportunities above $100 and above the 8/8 Murray level, with targets at the upper band of the ascending channel around $103.84.
Conversely, a drop and hold below $100 would be a sell signal, with a target of $98.62. If bearish momentum intensifies and crude oil breaks below $97.70, we could expect a sharp decline toward the 200 EMA at about $92.83.
As long as the price of crude oil remains above $100, we could expect it to continue rising in the coming days, which would be a positive signal. Conversely, if the price falls below $100, that would indicate renewed downward pressure.
Note that the Eagle indicator has reached overbought levels, implying that the market may be nearing a technical correction. Given this, we should keep an eye on the $98 area. A break below that level could trigger a sharp downward move.
