Noor Trends News, Technical Analysis, Educational Tools and Recommendations
US crude oil futures prices experienced substantial gains during the initial trading sessions of the week, approaching the official target of 78.30 and reaching its highest level at $78.42 per barrel.
From a technical perspective, prices encountered a robust resistance level around 78.40, prompting a consolidation below the psychological barrier of 78.00. On the 240-minute timeframe chart, the Stochastic indicator indicates overbought conditions, suggesting potential retracement in the coming hours. The 50-day simple moving average is initially situated around 76.50, and temporary losses may extend towards 75.80 before potential recovery.
It’s important to note that this bearish bias does not conflict with the overall daily upward trend, with initial targets positioned around 78.70 and 80.00. Further gains may extend towards 81.50.
A word of caution: Today, high-impact economic data is anticipated from the American economy, specifically the results of the Federal Reserve Committee meeting and the press talk of the President of the European Central Bank. Additionally, the release of the consumer price index from Canada may lead to increased price volatility. The overall risk level is elevated due to continuing geopolitical tensions. Investors should exercise caution and remain vigilant in response to these events.
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.
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