Oil: incurring huge losses and the risks are high 22/11/2022

US crude oil futures prices incurred significant losses during the previous trading session, surpassing the bearish targets that must be touched in the last analysis at 80.00, to deepen its losses, reaching $75.30 per barrel.

Technically, by looking at the 4-hour chart, we find that the simple moving averages continue to support the daily bearish price curve, stimulated by the negative signals coming from the RSI and its stability below the middle line; on the other hand, we find the stochastic indicator trying to get positive signals.

With the conflicting technical signals and the high level of risk compared to the expected return, we prefer to monitor the price behaviour to be in front of one of the following scenarios:

To resume the decline, we need to witness a break and stability for the price of the 77.00 support area, to target 73.60/74.00.

Temporarily returning to the bullish track requires us to witness a clear breach of the 82.20 resistance, and from here we target 84.00.

Risk 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: 77.00	R1: 82.20
S2: 73.60	R2: 84.00
S3: 71.90	R3: 87.40