Oil retesting support 19/10/2023

Mixed trading controls the performance of US crude oil futures contracts within the expected bullish path, touching the first target published in the previous technical report for 89.90, recording its highest level of $89.85 per barrel.

Technically, prices were bearish after touching the resistance level represented by the target of 89.90, which forced oil to move negatively. However, the simple moving averages are still trying to hold the price.

Hence, the stability of daily trading above 87.50 encourages us to maintain our positive expectations, targeting 89.45, knowing that breaching the aforementioned level increases and accelerates the strength of the expected upward trend to visit 90.95, and the gains may extend towards 91.30.

Below 87.50 with the closing of at least an hour candle postpones the chances of a rise. We may witness a retest of 86.90 and 86.65 before attempts to rise again.

Note: The level of risk 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: 86.90	R1: 89.45
S2: 85.80	R2: 90.95
S3: 84.30	R3: 92.05