Oil is making an upward rally 20/11/2023

There was a notable surge in the prices of US crude oil futures contracts in the recent trading session, effectively nullifying the previously anticipated bearish scenario that relied on trading stability below the 73.70 resistance level at the time of the report’s issuance. As a reminder, it was previously mentioned that price consolidation above 73.75 could thwart the bearish outlook, leading to a recovery in oil prices with an initial target set at 75.60, reaching its peak at $76.14 per barrel.

From a technical perspective, the simple moving averages have shifted their trajectory to support the price from below. Clear positive momentum signals are evident on the 14-day momentum indicator. Additionally, trading stability above the 73.80 resistance level, now acting as a support, indicates a role reversal in market dynamics.

Given these indicators, there exists a possibility of resuming the upward trajectory, with initial targets starting at 77.20. It’s crucial to note that an upward jump and consolidation above 77.20 would further strengthen the upward trend, with an anticipated touch of 78.30 as the next significant station.

Conversely, a return to trading stability below 73.80, and more importantly, 73.70, could undermine the proposed bullish scenario. In such a scenario, the downward trend may regain control over oil prices, targeting 72.80 initially.

A word of caution: The current geopolitical tensions elevate the risk level significantly, potentially leading to heightened price volatility. Investors should exercise caution and remain vigilant in response to market dynamics.

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: 73.85	R1: 77.20
S2: 71.65	R2: 78.30
S3: 70.55	R3: 80.50