Oil resumes its downward path 6/2/2023

Futures prices achieved significant losses last Friday, as part of the expected downside path during the latest technical report, surpassing the official target station 74.20, recording its lowest level at 73.16.

Technically, we tend to be negative in our trading, relying on the confirmation of oil breaking the support level of 76.50, in addition to the price continuing to obtain negative pressure from the 50-day simple moving average on the 4-hour time frame.

The expected slope is bearish, as long as trading remains below 76.50, knowing that price stability below 73.20 facilitates the task required to visit 71.20, an initial station whose negative targets may extend later towards 70.50, unless we witness any trading again above 76.50.

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: 71.75	R1: 76.55
S2: 70.10	R2: 79.70
S3: 66.95	R3: 81.35