The price of crude oil is trading around $90.35, above the 200 EMA and above the 21 SMA, but within a downtrend channel that has been forming since September 11.
Given that the price is consolidating above the 200 EMA, this could be considered a positive signal to continue buying around $90 with targets at 91.70. If there is a decisive breakout from the downtrend channel and the price breaks above $92.00, we could expect the uptrend to continue, and the instrument could reach the psychological level of $100 in the coming days.
Conversely, if crude oil falls below the psychological level of $90, we could view this area as an opportunity to sell, anticipating that it will reach the 6/8 Murray level at $87.50; ultimately, the price is expected to reach the 5/8 Murray level around $81.25.
If a pullback toward $91.75 occurs in the coming hours, this zone could be seen as a signal to sell, as it represents the upper band of the downtrend channel. If the price encounters resistance here, it could be considered an opportunity to sell in the coming hours, with short-term targets around the psychological level of $80.
The Eagle indicator is showing a positive signal, so we should be cautious about selling crude oil as there is a positive signal to continue buying above the 200 EMA.
We should monitor the $91.75–$92.00 zone, as that is where the upper band of the downtrend channel is located; a breakout or rejection there could signal a decision to buy or sell.