Oil testing support and waiting for a new signal 26/1/2023

US crude oil futures prices achieved the first bearish target referred to in the previous analysis at 79.40, to start a bullish rebound due to touching the support 79.40 represented in the first target, to witness the current movements stabilizing above the barrier of $80.00 per barrel.

Technically, the 50-day simple moving average is trying to push the price to the upside, as we find positive crossover signs that started to appear on the stochastic on the 4-hour timeframe; on the other hand, we find the momentum continuing to decline.

With conflicting technical signals, we prefer to monitor the price behaviour to be in front of one of the following scenarios:

Restoring the bullish path requires price consolidation and passing upwards to the 81.20 resistance level, which may enhance the chances of rising towards 82.00 & 82.60.

Sneaking below 79.40 leads oil prices to resume yesterday’s drop, targeting 78.60 initially.

Note: Today, we are awaiting high-impact economic data issued by the US economy, The estimated reading of the quarterly GDP, and we may witness a high fluctuation.

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: 79.45	R1: 81.20
S2: 78.60	R2: 82.00
S3: 77.75	R3: 82.85