Oil makes up for its losses 8/5/2023

As we expected during the previous technical report, US crude oil futures prices recovered, touching the required target at 71.20, recording a high of $71.77 per barrel.

Technically, we find that oil prices have returned to stability above the support floor of the psychological barrier of 70.00, in addition to the intraday stability above 71.00, and with a close look at the 60-minute chart, we find the 50-day simple moving average trying to push the price to the upside by providing a positive motive, and we find some signs of bullish momentum started to appear on the 14-day momentum indicator.

We tend to rise, but with caution, targeting 72.60, an initial station, and breaching it will lead the price to achieve additional gains that may extend towards 73.80.

The decline below 70.50 postpones the chances of a rise, and we may witness negative pressure; its initial target is 69.40.

Note: Stochastic is negative and we may witness some fluctuation until the expected direction is obtained.

Note: The level of risk is high and does not match the expected return, and careful consideration is required, bearing in mind that all scenarios are likely to occur.

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: 69.40	R1: 72.60
S2: 67.35	R2: 73.80
S3: 66.15	R3: 75.80