FX.co ★ Trading Signals for CRUDE OIL (WIT) for May 8-15, 2024: buy above $78.12 (21 SMA - 2/8 Murray)

Early in the American session, Crude Oil (WTI) is trading around 78.44 within a downtrend channel forming since April 11 and within a secondary bearish channel forming since April 29 under strong bearish pressure.

On the H4 chart, we can see that crude oil has been bouncing within this area. In case there is a sharp break above $78.49 per barrel price, the price could reach the 200 EMA located at 81.73.

This decline in crude oil has been accumulating for several days due to US statistics that indicate a significant increase in crude oil inventories and production.

Technically, crude oil is oversold since the eagle indicator reached the 5-point zone. It means that the market could see a technical rebound in the coming days.

In case crude oil falls below 2/8 Murray, a decline is expected to occur. So, the price could reach the support of 1/8 Murray located at 76.65.

Our trading plan for the next few days is to buy crude oil above 78.12. Additionally, if a sharp break occurs above the downtrend channel, we could look for opportunities to buy with targets at 4/8 Murray located at 81.25 and finally, at the top of the downtrend channel around 81.73.