Crude oil is trading around $88.82, below the 21-day SMA and above the strong Murray 6/8 support level, after several attempts to consolidate above this zone.
The daily chart shows a strong uptrend in crude oil that began on June 30, reaching a high of around $102.90. However, crude oil was unable to consolidate above the 8/8 Murray line, and since early September, we have seen a strong technical correction. It is likely that CL will continue to fall in the coming days, but to confirm this, we must monitor the 6/8 Murray line.
On the daily chart, we can see that crude oil left a gap in the $84 area on August 23. Technically, if crude oil falls below $87.50, we could expect it to reach the 200 EMA around $83.17, which could close this gap.
If crude oil remains above $87.50—where the 6/8 Murray level is located—we could expect a technical rebound, which could reach the 21 SMA around $93.50.
A decisive break above the secondary downtrend channel formed from its high of $102.90 could lead to a break of this zone around the psychological level of $90, which could then be seen as a buy signal with targets at $95 and finally at the 8/8 Murray level around $100.
Our trading plan for the next few hours is to buy crude oil above $87.50. Conversely, a break below this level could be seen as a signal to sell, with a target at $83.17, around the 200-period EMA.
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