Oil: Negative pressure Remains 22/9/2022

As we expected, US crude oil futures prices achieved a strong decline yesterday within the bearish directional movement, touching the first official target of the previous report at 82.65, recording the lowest price at 82.44.

Technically, the regularity of movement within the descending price channel supports the continuation of the decline, as we find the simple moving averages continuing their negative pressure on the price from above.

Therefore, the decline below 83.00 facilitates the task of resuming the decline towards 81.60, a first target, considering that breaking the mentioned level will extend the losses, so we will wait for 80.00 as long as the price is stable below 85.75. It should be noted that the price’s consolidation above 85.75 can thwart the decline’s continuation and lead oil to a quick recovery towards 88.30 and 90.00, respectively.

Note: We are awaiting high-impact data from the UK “British interest rate decision, monetary policy summary, and MPC votes,” and we may see price volatility.

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: 81.55	R1: 85.75
S2: 79.85	R2: 88.30
S3: 77.35	R3: 90.00