Oil tests the resistance 25/4/2023

Mixed trading dominated the movements of US crude oil futures contracts, invalidating the bearish scenario published during the previous analysis to return to stability again above the level of 77.80, explaining that breaching the mentioned level can nullify the bearish scenario. As a result, oil prices rise to around 78.80, recording their highest level at $79.14 per barrel.

Technically, the current movements witness the stability of the price below the strong resistance level at 78.80, and we find signs of negativity still dominating the stochastic indicator, which started to lose bullish momentum gradually.

We maintain the bearish path, and the chances of a decline are still present and effective, targeting 77.20 as the first target, taking into consideration that breaking the target level increases and accelerates the strength of the bearish trend, to be waiting for 75.80/76.20

The price’s consolidation and an hourly candle’s closing above 78.80 will immediately stop the expected drop, and oil prices will start to recover temporarily towards 79.60 & 80.40.

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: 77.20	R1: 79.60
S2: 75.80	R2: 80.50
S3: 74.70	R3: 81.90