Oil achieves bullish target and positivity remains 24/1/2023

Positive movements dominated the prices of US crude oil futures contracts within the expected bullish track yesterday, touching the first bullish target to be achieved during the last report at 82.10, and approaching a few points away from the main target of 82.80, only to record its highest level at $82.60 per barrel.

Technically, the bullish bias is still valid and effective, based on price stability above the 50-day simple moving average, which meets near 81.10, in addition to the positive signs from the relative strength index and its stability above the mid-line 50.

Therefore, the bullish trend is more likely, considering that consolidation above 82.50 extends oil’s gains, as we are waiting to touch 83.30 as the next target and may extend later to visit 84.00.

From below, the return of trading stability below 81.00 can postpone the suggested bullish scenario, and we may witness a retest of 80.00/80.30 before attempts to rise again.

Note: Stochastic’s negativity might push oil to achieve some concessions before obtaining the bullish daily trend.

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: 81.00	R1: 82.50
S2: 80.30	R2: 83.30
S3: 79.50	R3: 84.00