Oil retests the moving average 15/2/2023

Temporary negative movements regained control over the prices of US crude oil futures contracts, nullifying the expected bullish technical outlook during the previous report, in which we relied on the bullish technical pattern, in addition to the price’s stability above 78.30 at the time of the report’s release, to witness clear divergence after the release of the US inflation figures.

Technically, negative features started to appear on the stochastic indicator, and it started to lose bullish momentum temporarily, in addition to signs indicating that the bullish momentum is confined to the short-term intervals. On the other hand, the simple moving average still supports the possibility of ascending.

We tend to the temporary negativity with caution, aiming for a retest of the 50-day simple moving average, which meets around 77.30, before determining the next price wave, knowing that the bullish trend is still valid and effective once 79.60 has been breached, paving the way for oil prices to complete the bullish path, with an initial target of 80.60.

Warning: the risk level may be high today.

Caution: Today we are awaiting high-impact economic data issued by the US economy, “retail sales, the manufacturing index of New York State, in addition to the speech of the European Central Bank governor, in addition to the consumer price index from the United Kingdom. We are also awaiting the report issued by the International Energy Agency regarding oil stocks.

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: 77.50	R1: 79.55
S2: 76.50	R2: 80.60
S3: 75.40	R3: 81.60