Oil is stable below resistance 7/6/2023

Negative trading dominated the prices of US crude oil futures contracts yesterday, after the price crept below the strong support level published during the previous technical report at 71.55, recording its lowest level at 70.17, and the intraday movements are still stable below the mentioned support, and it is currently trading around $71.40.

Technically, we tend to be negative, relying on the stability of intraday trading below 71.55, the resistance represented by Fibonacci correction 61.80%, as shown on the 4-hour chart, in addition to stochastic gradually losing bullish momentum.

Therefore, we target 70.30 as a first target, knowing that breaking the mentioned level paves the way for negative movements, its initial targets start at 69.30, taking into consideration that the closing of the 4-hour candlestick above 71.55 is able to turn the daily trend into a bullish one, targeting 72.45 & 73.40.

Caution: Today we are awaiting the report issued by the “International Energy Agency” regarding oil stocks, and we may witness high fluctuations in prices.

CAUTION: The risk level is high and 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: 70.30	R1: 72.45
S2: 69.20	R2: 73.45
S3: 68.20	R3: 74.60