Noor Trends News, Technical Analysis, Educational Tools and Recommendations
US crude oil futures prices followed the anticipated downward trajectory outlined in yesterday’s technical report. We emphasized the significance of trading stability below 82.70, noting that any trading above 82.85 could postpone the likelihood of a decline. Temporary recovery attempts were observed, aiming to retest 83.40, with the highest level recorded at 83.51, offsetting a portion of the short position.
Technically, upon examining the 4-hour timeframe chart, we observe that the 50-day simple moving average is exerting negative pressure on the price, converging near the pivotal resistance level of 83.85. This convergence adds further strength to the resistance level, supporting the possibility of a decline. Conversely, the relative strength index continues to show signs of upward momentum.
Therefore, it’s advisable to closely monitor the price’s behavior, considering the following scenarios:
- Resumption of Uptrend: Witnessing a breach of 83.90 would signify a resumption of the uptrend, enhancing the likelihood of touching 84.30 and 85.00.
- Failure to Breach Resistance: In case the price fails to breach the resistance at 83.90, it may lead to a touch of 81.70.
Warning: Today’s risk level may be elevated.
Warning: Given ongoing geopolitical tensions, there is a possibility of high price volatility.
Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.
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