Oil is facing temporary negative pressure 25/9/2023

A gradual rise in the prices of US crude oil futures contracts within the bullish context was expected during the previous technical analysis, approaching by a few points from the published target of 91.40, recording its highest level of $91.30 per barrel.

Technically, with a closer look at the 4-hour chart, we find oil prices stable below the strong resistance level represented by the previous target of 91.40, unable to break it. We also find negative crossover signals beginning to appear on the Stochastic indicator.

From here, with trading remaining below the resistance as mentioned earlier, we may witness a bearish corrective tendency during the coming hours, targeting 89.40, the 23.60% correction, a first target, knowing that breaking the level above extends the bearish correction, as we wait to touch 88.30, the next official station.

Only from above, crossing upwards and rising above 91.40 will stop the suggested scenario above directly, and the price will head to achieve gains starting at 92.20 initially.

Note: Risk level may be 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: 89.20	R1: 91.15
S2: 88.30	R2: 92.20
S3: 87.30	R3: 93.10