Oil: Negative Pressure is in Place

US crude oil futures declined significantly during the previous trading session, negates the outlook for the expected bullish correction yesterday, recording a low of 57.40.

Technically, oil continues to receive negative pressure from the 50-day moving average that supports the continuation of the decline, in addition to the price’s failure to stabilize above 59.80.

We tend to be negative, targeting 57.40, bearing in mind that the breach of the aforementioned level increases and accelerates the strength of the daily bearish trend, so that the next leg is located around 55.70 and may extend 54.90.

A reminder that the return of price stability above 59.80 will negate the bearish scenario completely, and we may witness a bullish bias during the session, targeting 60.80, and then 61.40.

Note: The level of risk may be high.

S1: 57.40	R1: 60.80
S2: 55.70	R2: 62.55
S3: 54.00	R3: 64.25