Oil returns to stability above support 4/11/2022

Mixed trading dominated the futures prices of US crude oil yesterday, trying to maintain the expected bullish context during the previous analysis, in which we relied on stability above the strong support level 88.10 to end its daily trading above the mentioned level, and it is now trading around 88.80.

Technically, we tend to be positive but cautious, relying on the continuation of the move above the 50-day simple moving average and the positive signals coming from the stochastic indicator on the 4-hour time frame.

From here, with the daily trading above 88.10, the bullish scenario remains valid and effective, targeting 89.80, a first target, and its breach, motivating the price to achieve gains extending towards 90.75.

To remind that the failure of oil prices to maintain positive stability above 87.80 nullifies the activation of the proposed scenario completely and puts the price under strong negative pressure, with its initial target of 86.70 and extending later towards 85.80.

Note: Employment data, Unemployment rate and average wages are due today in the USA and they have a high impact, and we may witness price fluctuations at the time of the news release.

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: 87.80	R1: 89.80
S2: 86.70	R2: 90.75
S3: 85.75	R3: 91.85