Oil is looking for a new movement signal 27/2/2024

At the onset of this week’s trading, US crude oil futures contracts experienced a modest uptick, marking their peak yesterday in close proximity to the psychological resistance threshold of 78.00.

From a technical standpoint, a scrutiny of the 4-hour timeframe chart reveals the resurgence of the 50-day simple moving average, providing a supportive impetus for a potential ascent. Conversely, the Stochastic indicator indicates a gradual wane in upward momentum as trading persists below the psychological resistance level of 78.00.

Given the conflicting technical signals, it is prudent to monitor price dynamics, which may unfold into one of the following scenarios:

To validate an upward trajectory, a requisite condition is the consolidation of prices above 78.00, potentially facilitating a move towards the initial target of 78.35, with subsequent gains possibly extending to 79.20.

Conversely, breaching the support level at 76.80 could exert downward pressure, prompting a retest of the 76.20 mark initially.

A word of caution: Today’s trading environment is marked by the imminent release of significant economic data from the American economy, notably the “Consumer Confidence Index,” which could precipitate heightened volatility upon its publication.

Furthermore, it is essential to acknowledge the elevated risk landscape amidst ongoing geopolitical tensions, which may exacerbate 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: 76.20	R1: 78.35
S2: 74.95	R2: 79.25
S3: 74.10	R3: 80.50