Crude Oil Facing Strong Resistance

Positive trades dominated the movements of US crude oil futures within the expected bullish path, touching the first required target of 60.50, recording the highest of 60.88.

Technically, oil found it difficult to maintain the trading level above the psychological barrier of 60.00, and we find that the RSI indicator began to lose the bullish momentum gradually over short time intervals.

Consequently, we may witness a slight bearish bias during the coming hours, targeting a re-test of 58.50, knowing that breaking the latter will extend oil losses, opening the way to a visit of 47.50.

From the top, crossing to the upside and rising again above 60.80 will immediately stop the expected bearish scenario, and oil will recover again with the first target of 62.00.

Note: Oil inventories are due today from IEA and we may witness fluctuations.

S1: 58.50	R1: 60.80
S2: 47.50	R2: 62.00
S3: 56.30	R3: 63.10