Crude oil is trading at around $97.12 following the sharp decline that began last Friday, October 29. After reaching $104, crude oil was unable to hold that price level and began a downward trend, hitting a low of $97 today, November 2, and is likely to continue falling until it reaches the 200-day EMA, which is around $95.49.

Crude oil left a gap around $102. The odds are that the price could return to these levels in the coming days following a technical rebound. This could be considered a buy signal if the price remains above the 200-day exponential moving average (EMA), which stands at around $95.49.

Given that the Eagle indicator is reaching oversold levels, we believe crude oil will continue to face downward pressure over the next few days. Therefore, if a pullback occurs toward the psychological level of $100 and the price fails to consolidate above this zone, it will be interpreted as a negative signal. So, we could sell below the 21-day simple moving average (SMA), currently at $101.19, with targets at $95.50; ultimately, we expect it to reach the psychological level of $90.

At current price levels, we could begin buying crude oil during a technical rebound. To do so, we must closely monitor the key support level of $95.50. If downward pressure persists, we expect the 7/8 Murray level to act as solid support; this zone could also trigger a technical rebound, which would be considered a buy signal.