On April 25, the price of crude reached the level of 95.27, and then made a strong technical rebound and reached the level of 102.98 in the European session today.
In less than 48 hours, it has recovered almost 800 pips. This is a sign of a possible change in trend and it is likely to resume its rally. The key for WTI is to consolidate above the psychological level of $100.00 in the coming days.
One factor that could push crude higher is that the European Union is preparing smart sanctions against Russian oil imports.
On the other hand, one factor that could weaken the strength of crude is that China is still plagued by fears of a general closure in Beijing, the Chinese capital, as well as in Shanghai, which entails the risk of reducing the demand for crude oil.
According to the 1-hour chart, we can see that crude is making a technical correction and is trading around the 200 EMA located at 101.45.
If crude oil falls towards the Fibonacci 38.2% in the next few hours, we could expect a technical rebound around 100.00.
In case the oil price reached the 61.8% Fibonacci level during a technical retracement, a technical bounce could follow around 98.50.
We should avoid buying below the 61.8% Fibonacci level as the downtrend could resume. Conversely, any pullback in crude will be an opportunity to continue buying with targets at 103.00 and 5/8 Murray around 106.25.
The eagle indicator is still giving a positive signal. Crude oil is likely to continue the upward movement in the coming days.