Oil: positivity remains intact 14/2/2023

Positive movements dominated the prices of US crude oil futures contracts at the beginning of this week’s trading after it managed to build on the support of 78.30, to start its movements within an upward rebound, recording its highest level at 80.57.

Technically, we find a bullish technical formation that supports the continuation of the rise. The simple moving averages continue to support the daily bullish price curve and the positive signs of the 14-day momentum indicator.

Therefore, we maintain our positive outlook, considering that confirmation of the breach of 80.50 is a prerequisite for continuing the climb towards the first target of the bullish pattern at 81.50 and then 82.40, the next price station.

Note: There are overbought signs that started to appear on the stochastic, and we may witness some fluctuation until the official trend is obtained; noting that the negative signs of stochastic might lead to a retest of 78.50 before attempts to rise again.

Note: Markets are awaiting high-impact data issued by the US economy, “US inflation data/consumer price index”, and we may witness high price fluctuations at the release.

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: 78.30	R1: 80.35
S2: 77.40	R2: 81.50
S3: 76.20	R3: 82.40