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Crude oil is trading around $97.98, reaching a strong support zone very close to the lower band of the uptrend channel. Therefore, we believe that crude oil could resume its uptrend in the coming days, and we could look for buying opportunities if the price reaches $97, with targets at $100 and, ultimately, the strong resistance level formed on the H4 charts around $102.70.
A drop below $97 could signal a decisive break of the existing trend channel, so crude oil is likely to reach the 200 EMA around $94.12. Therefore, we must monitor this $97 zone to decide whether to open short or long positions.
If crude oil consolidates above the 21-day SMA at $98.55 in the coming hours, we suggest a positive outlook, and crude oil might return to the $100 level, as this technically represents a psychological level and an area of strong price action. Therefore, we could expect consolidation to occur around this area in the coming days.
The Eagle indicator on the H1 chart is showing a positive signal, so we'll take this signal into account and look to enter a long position in the coming hours or even days.
*Analiza tržišta koja se ovde nalazi namenjena je boljem razumevanju tržišta i ne pruža instrukcije za vršenje trgovanja.
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