Oil may add more gains 25/5/2023

Positive trading dominated the prices of US crude oil futures contracts yesterday, supported by the continuation of gaining bullish momentum that led prices to touch the first expected target at 74.50, recording the highest of $74.70 per barrel.

Technically, the positive impact of the bullish technical structure during the previous report, the “double bottom”, is still valid and effective. The simple moving averages continue to provide a positive motive that supports the bullish daily price curve, in addition to confirming the breach of the resistance level of 73.80, 50.0% correction.

From here, with steady intraday trading above 73.70, and in general above 73.40, the bullish scenario remains the most favorable, targeting 74.90 as the first target, taking into account that its breach is a catalyst that enhances chances of a rise towards 75.55 initially.

Sneaking below 73.40 postpones the bullish scenario but does not cancel it, and we may witness a retest of 72.50 before attempts to rise again.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “the preliminary reading of the Gross Domestic Product,” quarterly, and we may witness a high fluctuation in prices.

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: 73.40	R1: 74.90
S2: 72.50	R2: 75.55
S3: 71.85	R3: 76.40