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US crude oil futures prices declined significantly, invalidating the positive outlook we expected, in which we relied on the consolidation of daily trading above the support level of 79.70, explaining that breaking the mentioned level will cancel the idea of resuming the rise and put the price under immediate negative pressure, with its targets located at 78.30, recording its lowest level at 76.80, as well.
In addition, we pointed out that the level of risk is high and may need to be commensurate with the expected return due to the European Union’s decision to put a ceiling on the price of Russian oil.
Technically, the confirmation of oil breaking the support level of 79.20, in addition to the return of the simple moving averages to put negative pressure on the price from above.
Therefore, we may face a bearish correctional tendency today, with a target of 76.80. However, we must be careful that trading below the mentioned level increases and accelerates the strength of the bearish correctional tendency, opening the door to 75.20.
Only from above, crossing upwards and consolidating above 79.20, we may witness a retest of 81.10. The price behaviour should be monitored around this level due to its importance for the general trend on the intraday basis because its breach can consolidate the gains towards 82.10.
Note: The level of risk is high and may not be commensurate with the expected returns.
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.
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