Oil is looking for a stronger trend 21/6/2023

Mixed trading in both directions dominated the prices of US crude oil futures contracts, nullifying the negative outlook as we expected, in which we relied on stable trading below the level of 71.55, recording its highest level at $72.33 per barrel.

Technically, the current movements of oil prices are witnessing stability below the primary resistance 71.55, represented by a Fibonacci correction 61.80%, as shown on the 4-hour chart, which increases the possibility of resuming the bearish tendency. On the other hand, the simple moving averages still provide a positive motive supporting the rise’s return.

With conflicting technical signals, we prefer to monitor the price behaviour to be in front of one of the following scenarios:

Closing at least an hourly candlestick above the resistance level of 71.55 is a catalyst that enhances the chances of a rise towards 72.60 & 73.70.

Failure to stabilize above 71.55 and stability returning below 70.60 indicates a negative attack to visit 68.70 initially.

Note: Today, we await high-impact economic data issued by the British economy, the annual “consumer price index”, and “the testimony of the Federal Reserve Chairman” on the semi-annual monetary policy report before the House Financial Services Committee. We may witness a high price fluctuation during the news release.

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: 70.10	R1: 72.60
S2: 68.70	R2: 73.70
S3: 67.60	R3: 75.10