Crude oil is trading around $99.78 within the primary uptrend channel that has been forming since early October and is pulling back after reaching the $102.45 level during Monday's US trading session. Since then, we have seen a technical correction, and the price is now consolidating around the psychological level of $100.00.
If a decisive break below the trend channel occurs in the coming hours and consolidation takes place below the 8/8 Murray level, this could be considered a bearish signal to sell crude oil with targets at $96.25 and $95.40; ultimately, we expect it to reach the 200-day EMA, around $93.88.
If the price of crude oil consolidates above the psychological level of $100, above the 8/8 Murray level, and within the uptrend channel, this could be considered a signal to continue buying, with the expectation that it will reach the +1/8 Murray level around $106.25 in the coming days.
One detail we can observe on the chart is that the instrument has not yet fully closed the gap it left at the start of this trading week. That's why we believe that crude oil could rise again in the coming days and reach the $102.69 area.
Therefore, as long as the price remains within the uptrend channel, we will look to buy crude oil with targets at $102, $102.69, and finally $106.25.
Another factor to consider is that the Eagle indicator has reached overbought levels and is giving a negative signal. Therefore, we must be cautious in case a technical rebound toward $102–$103 occurs, as this could be seen as an opportunity to continue selling crude oil in the coming days.