Crude oil is trading around $88.17, rebounding after reaching a low of $84.71. With this drop, crude oil filled the gap left on May 28th around $87.20. Technically, the H4 chart shows that crude oil is displaying a positive signal, and we could expect it to continue rising in the coming hours above $87.50, reaching the psychological level of $90. It could even reach the upper band of the ascending trend channel around $92.
Crude oil is likely to continue rising, as we observe the formation of a double-bottom pattern around $85.50. This pattern could indicate a positive scenario for crude oil in the coming days, so we could continue buying in the next few hours, with targets at the 200 EMA around $92.65. We could expect crude oil to fill the gap left on May 21st around $95.96.
In case crude oil encounter strong resistance around the 21-period SMA, we could expect a technical correction and consolidation, paving the way for a bullish scenario.
A decisive break above the descending trend channel and consolidation above the 200-period EMA around 92.65 could shift the outlook for crude oil, potentially reaching $95.96 and eventually the 8/8 Murray pattern around the psychological level of $100.
Our trading plan for the next few hours is to buy crude oil from the $87.50 level with targets at $90 and $92.65. The Eagle indicator is showing a positive signal, which supports our bullish strategy.
