Oil achieves goals and negativity persists 16/11/2023

Futures prices experienced a significant downturn during the previous trading session, aligning with a negative forecast as we anticipated in our previous report. The decline surpassed the official targets of 77.55 and 76.65, reaching its lowest level in the early trading hours of the current session at $75.92 per barrel.

From a technical standpoint, we are inclined towards a negative outlook, underpinned by the bearish pressure exerted by the simple moving averages that continue to bolster the daily declining price trajectory. This is coupled with negative momentum signals emanating from the 14-day momentum indicator.

Given that daily trading remains below the resistance level of 77.75, we are encouraged to hold onto our negative expectations, setting 75.00 as the primary target. It’s important to note that breaching this level could amplify and hasten the strength of the daily downward trend, paving the way directly towards 74.10.

On the contrary, a breakthrough and price consolidation above 77.80 could entirely dispel the bearish scenario, enabling oil prices to recover and head towards 79.55 and 80.60.

Caution is advised as the level of risk may be high due to ongoing geopolitical tensions, which could result in substantial 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: 75.00	R1: 77.80
S2: 74.10	R2: 79.65
S3: 72.30	R3: 80.60