Oil faces strong selling 16/8/2022

US crude oil futures price movements witnessed a noticeable decline by more than 4.0%, recording its lowest level during the previous session’s trading of 86.85.

Technically, we find that the intraday movements of oil are trying to recover with the momentum indicator getting some positive signs. Still, the 50-day simple moving average continues to pressure the price from above, in addition to stabilizing trading below the previously broken support floor located at 92.00.

Therefore, we expect the current bearish trend to continue, considering that the decline below 86.40 increases and accelerates the strength of the daily bearish trend, to be waiting for the next 85.00 price station as long as trading remains stable below 91.65 and, most importantly 92.00.

Note: The risk level is high.

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.

S1: 86.40	R1: 91.65
S2: 84.00	R2: 94.50
S3: 81.20	R3: 96.90