Oil is still below resistance 20/6/2023

Mixed trading dominated the prices of US crude oil futures contracts yesterday, within a negative path, and the intraday oil movements are still stable below the resistance level of 71.55.

Technically, the 50-day simple moving average pushes the price to the upside. On the other hand, negative features still dominate the stochastic on the 4-hour timeframe, stimulated by a decline in momentum.

With trading remaining stable below the main resistance of the current trading level 71.55, represented by Fibonacci correction 61.80%, as shown on the chart, the bearish scenario remains valid and effective, targeting 70.55 as the first target, knowing that decline below the mentioned level increases and accelerates the strength of the bearish tendency, opening the way directly towards 70.00. Later, the losses may extend towards 69.40.

Closing the 4-hour candlestick above the main resistance above 71.55 will immediately stop the bearish scenario and turn the trend upside down, with targets starting at 72.75 and 73.30, waiting stations.

Note: 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: 70.55	R1: 71.95
S2: 70.00	R2: 72.75
S3: 69.20	R3: 73.30