Oil Extends Its Gains 7/1/2022

US crude oil futures prices jumped, achieving significant gains, recording a high of $80.26 per barrel after it succeeded in maintaining trading above the support level of 79.50.

Technically, we notice the 14-day momentum indicator continues to provide positive signals, defending the bullish direction. This comes in conjunction with the price stability above the 50-day moving average, which meets around the 77.75 support level and adds more strength.

We tend to be positive, but with caution, knowing that a breach of 80.30 might boost oil’s gains to be 81.30 as the next price stop, which may extend its targets later towards 81.80.

Activating the suggested bullish scenario requires the price to remain above the strong support floor 79.50, because in case it is broken, we may witness a bearish slope that aims to retest 77.75.

Note: US Jobs Data, average wages, and US unemployment rates are due today and may cause volatility.

Note: all scenarios are on the table.

S1: 77.75	R1: 81.30
S2: 75.45	R2: 82.55
S3: 74.25	R3: 84.80