Crude oil is trading around $85.61, consolidating above the 3/8 Murray level and pulling back after encountering strong resistance at the 4/8 Murray level, around $87.50.
Crude oil could return to the $90 level and even the psychological $100 level in the coming days, as we are seeing strong oversold conditions; therefore, as long as the price remains above the 3/8 level, the outlook will remain positive, and we could open long positions above this zone.
If crude oil consolidates above $85.64 in the coming hours, this will be considered a positive signal to buy, with targets at $87.50; in turn, a decisive break above $87.50 will be seen as an opportunity to resume buying, with targets at $90.62 and around the 200-day EMA, currently at $92.83.
Conversely, a move below the 3/8 Murray level could change the outlook for gold, and a decisive break below that level could reverse the uptrend, enabling a decline to $81.25 and, potentially, even to the psychological level of $80.