Oil loses momentum and eyes on inventory data 23/11/2022

We remained neutral during the last analysis due to the high-risk rate and the conflicting technical signals. However, yesterday’s trading session witnessed attempts by oil prices to compensate for the previous losses, recording a high of 82.35.

Technically, by looking at the 240-minute chart, we find the stochastic around the overbought areas and the negative pressure from the simple moving averages.

From here, and with continued trading stability below 82.25, the bearish bias is more likely, provided that we witness a clear and strong break of the support level of 80.50, which constitutes a negative pressure factor on the price to target 79.75, and the losses may extend later towards 78.60.

Consolidation above 82.25 once again might lead oil prices to recover temporarily to retest 83.55.

Note: We are awaiting high-impact economic data in the US, “the preliminary reading of the services and manufacturing PMI and Federal Reserve Committee meeting”

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: 79.75	R1: 82.25
S2: 78.55	R2: 83.55
S3: 77.25	R3: 84.75