Oil is under negative pressure 22/5/2023

Mixed movements dominated the prices of US crude oil futures contracts at the end of last week’s trading, to start with negativity again after recording its highest price, $73.55 per barrel.

Technically, we tend to be negative in our trading, relying on the stability of intraday trading below the resistance level of 71.60, in addition to the negative pressure coming from the simple moving averages that pressure the price from above and are stimulated by the negative signals of the 14-day momentum indicator.

Therefore, the bearish slope is the most likely during the day, targeting 70.20 as the first target, and breaking it increases and accelerates the strength of the bearish trend, to be waiting for touching 69.30 next station.

From above, it crossed upwards, and the price consolidated above 71.60, Fibonacci correction of 61.80%, as shown on the chart, with a 4-hour closing candle, which temporarily invalidates the activation of the bearish scenario, and we are witnessing attempts to recover, with its initial target 72.70.

Note: The level of risk is high

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: 70.20	R1: 72.75
S2: 69.30	R2: 74.45
S3: 67.70	R3: 75.35