Crude Oil: May Have a Temporary Decline

The current moves in US crude oil futures are witnessing a slight bearish tendency after finding a strong resistance level around 53.20, seeing the current moves stabilize the price near the session low of 52.40.

Technically, although we tend to be positive in our trades on the medium time frames, we notice the negative pressure coming from the 50-day moving average, in addition to the clear negative signs on the RSI indicator on the short time frame.

This makes us believe that there is a possibility of a bearish bias in the coming hours, targeting 51.80 / 51.70, knowing that breaking the aforementioned level will be a negative pressure factor pushing the price to visit 51.10.

The activation of the temporary bearish scenario depends on the price remaining below 53.20, and its breach is able to cancel the bearish tendency, and oil will restore the official bullish path with the goal of 53.90 / 54.00.

S1: 51.75	R1: 53.20
S2: 51.05	R2: 53.90
S3: 50.35	R3: 54.60