Crude oil is trading lower and approaching a critical test of the 100-day moving average near the $65 level. A break below this moving average, and more importantly, staying below, would likely open the door to further downside momentum.
Having said that, zooming into the hourly chart, there is a notable support zone between $64.48 and $64.70 (see red-numbered circles on the chart). A move below that area would shift the focus to the June low near $64, which represents the next major target on the downside.
Traders should keep in mind that:
Breaking below the 100-day MA signals potential for deeper declines.
Breaking below the $64.48–$64.70 zone confirms weakness.
Breaking below the June low at $64 strengthens the bearish bias.
At the same time, these levels may attract dip buyers looking to enter on a pullback with defined risk. For those looking to buy, this is a logical area to "stick a toe in the water," as the risk can be clearly defined against a break below $64.
In short, this zone between $64 and $65 is a pivotal battleground for both buyers and sellers. The next directional push will likely depend on whether bulls can hold the line — or if bears break through it.
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