Oil is outside the ascending channel pivots 19/1/2023

Significant gains were achieved by US crude oil futures prices within the positive outlook, as we expected yesterday, touching the first target of 81.70, and recording a high of 82.35.

Technically, oil prices collided with a strong resistance level of 82.40, which forced it to trade with strong negativity, so that the current movements witness a clear and strong break of the support floor at 79.20, explaining that breaking 79.20 puts the price under strong negative pressure to target 77.75 so that Oil records its lowest price during the early trading of the current session at 78.35.

Looking closely at the 4-hour chart, we notice the clear breakout and the regularity of work outside the axes of the bullish price channel, in addition to the return of the simple moving averages to pressure the price from above.

Therefore, the possibility of a bearish trend during today’s session is valid towards 77.75, the first target, and then 77.00, the next waiting station, whose targets may extend later to visit 76.70, provided that it does not cross upwards to the previously broken support-into-resistance level.

Note: The level of risks may be high as markets awaits the report issued by the International Energy Agency regarding oil inventories.

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: 81.00
S2: 75.70	R2: 83.70
S3: 73.10	R3: 85.00