Oil continues to suffer losses 1/11/2023

US crude oil futures prices have sustained losses as anticipated in the previous report, reaching the initial target of $81.15 and touching a low of $80.80 per barrel.

Upon analysis of the 240-minute timeframe, the trading remains stable below $82.00 and, more broadly, under the resistance level of $82.70. This stability is accompanied by the continued formation of simple moving averages, exerting downward pressure on the price.

Consequently, the preferred scenario continues to be bearish, progressing towards the previously indicated second target of $80.15, with $80.15 serving as the first target. It is crucial to note that breaching this target would further extend oil losses, potentially leading to a direct path towards $79.20, the subsequent level.

However, any upward movement involving a breakout and price consolidation above $82.70 could disrupt the proposed scenario entirely. Such a development would prompt a recovery in oil prices, potentially leading to a retest of the previously breached support level at $84.30.

A word of caution: Today, we anticipate the release of high-impact economic data from the American economy, including changes in jobs in the private non-agricultural sector, the ISM manufacturing purchasing managers’ index, the Federal Reserve Committee statement, interest rates, and the press conference of the Federal Reserve chairman. Expect significant market volatility upon the release of this news.

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: 80.15	R1: 82.70
S2: 79.20	R2: 84.30
S3: 77.60	R3: 85.25