Noor Trends News, Technical Analysis, Educational Tools and Recommendations
The downward trend persisted in US crude oil futures contracts, as anticipated, surpassing yesterday’s official target of $81.50 and hitting a low of $80.97 per barrel.
Technically, on the 4-hour chart, the simple moving averages continue to exert downward pressure on the price, accompanied by negative signals from the relative strength index (RSI), which remains below the 50 midline.
With stable trading below $82.50, oil prices are poised to extend their losses. A breach below $80.95 would facilitate a move towards $80.25, with the downward correction potentially extending to $79.75.
It’s important to note that price consolidation above $82.55 would postpone downside opportunities, although it wouldn’t negate them entirely. Temporary recovery attempts could occur, aiming to retest $84.00 before determining the next price destination.
Today, high-impact economic data is expected from the American economy, including the change in private non-agricultural sector jobs, the Federal Reserve Committee statement, interest rate decision, and a press conference by the Chairman of the Federal Reserve. These events may lead to heightened price volatility.
Given the ongoing geopolitical tensions, the level of risk remains elevated, and significant price fluctuations are possible. Traders should exercise caution and closely monitor market developments.
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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