Crude oil is trading around $85.04, below the 200-period exponential moving average (EMA) and above the Murray 3/8 level, rebounding after hitting a low of $84.35.
Crude oil is under downward pressure and could continue to fall in the coming days if the price consolidates below $86.39, potentially reaching the Murray 2/8 level, around $81.25.
A return above the Murray 4/8 line and consolidation above this zone could support a recovery in crude oil, and it could reach the psychological level of $90. Then, the instrument could even rebound to the 21-day simple moving average (SMA), around $96.18.
As crude oil is trading below the 200-period exponential moving average (EMA) on the daily chart, strong downward pressure could push prices below $86.50. We believe that the CL could find solid support around the psychological level of $80 or around $81.25 in the coming days.
The outlook for crude oil could be bullish; to confirm this, we must observe whether the price consolidates above the 200 EMA. If so, we will have a positive buy signal, anticipating that the gap left around $102 on October 30 will be closed in the coming days.
In the coming hours, if the price continues to bounce above the 3/8 Murray level around 84.35, we could keep an eye on this area, and it could be seen as a buy signal with targets at $86.39 and $87.50.