Close Monitoring Essential for Oil 30/10/2023

In the latest analysis, US crude oil futures achieved the anticipated retest, reaching the target of $85.65 and even surpassing expectations at $85.85 per barrel.

Examining the technical indicators, the 50-day simple moving average continues to exert pressure from above, while intraday trading remains below the extended resistance levels of 85.15/85.00, supporting a negative outlook. Simultaneously, the Stochastic indicator shows signs of attempting to shed its current negativity, hinting at potential momentum for an upward bias revival.

Given the conflicting signals from these leading technical indicators, a cautious approach is warranted. We will closely monitor the price behavior, awaiting the unfolding of one of the following scenarios:

1. Upward Momentum: Price consolidation above 85.15 is necessary to target 85.65. A breach of 85.65 could serve as a catalyst, propelling oil prices towards 87.00.
2. Downward Momentum: A clear and robust break of the 83.80 support level is essential to establish a downward trend. Such a breach would put downward pressure on prices, potentially leading to a visit to 82.95/83.00 initially.

It’s crucial to emphasize the inherent risks, which might not align proportionately with the expected returns.

Warning: The current geopolitical tensions elevate the risk levels substantially, contributing to the possibility of high price volatility. Exercise caution and vigilant monitoring in your trading decisions.

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: 82.95	R1: 85.65
S2: 81.70	R2: 87.10
S3: 80.25	R3: 88.35