Oil Hits Resistance 15/11/2023

The US crude oil futures contracts have been dominated by positive trading, aligning with our bullish forecast. They have touched the initial target price of $79.20, and are now heading towards the next official mark of $79.60. The contracts recorded their peak at $79.72 per barrel.

From a technical perspective, the oil prices have maintained a positive stability for an extended period, comfortably above the psychological threshold of $79.00. However, the simple moving averages currently pose a challenge, temporarily restricting the surge. Negative indications on the Stochastic indicator are also evident.

In the imminent trading hours, we anticipate a shift towards negativity, with intraday trading persisting under $78.80. The aim is to retest the $77.55 initial target, and potential losses may eventually stretch towards $76.65.

On the contrary, a decisive breakout with the price establishing above $78.80 for a minimum of one hourly candle can fully thwart the bearish outlook, enabling oil prices to bounce back towards $79.55 and possibly $80.60.

Note: Today, we expect high-impact economic data releases from the US economy, including the Producer Price Index, Retail Sales, and New York State Manufacturing Index. From the UK economy, the Annual Consumer Prices will be released. These announcements may lead to high price fluctuations.

Caution: The risk level may escalate due to ongoing geopolitical tensions, potentially causing significant price volatility.

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: 77.55	R1: 79.55
S2: 76.65	R2: 80.60
S3: 75.60	R3: 81.50