Early in the European session, Crude Oil (WTI) is trading around the psychological level of $80 within an uptrend channel forming since June 4 and showing signs of exhaustion with a possible technical correction.

Oil could resume its bullish cycle if it consolidates above the SMA 21 at $80.83 in the coming days. Then, it could reach the key pivot point around $81.25 (4/8 Murray). Above this level, it could easily reach even $83.

Given that crude oil has been consolidating around $80 for several sessions, a technical rebound will likely occur within the bullish trend channel in the next few hours and will be seen as an opportunity to buy with targets at 80.83 and 81.25.

On the other hand, with a sharp break of the uptrend channel and a drop below 80.00, crude oil is likely to drop to the support of $79.69 and could even reach the psychological level of 200 EMA located at $78.59.

The eagle indicator is showing overbought signals, but with a technical rebound above $80.00 crude oil could resume its bullish cycle and surpass a one-month high at about $81.70.