Oil achieves strong gains 6/9/2023

A noticeable surge in the prices of US crude oil futures contracts within the expected upward path, in which we relied on trading stability above the psychological barrier support floor of 85.00, touching the official target for yesterday’s session at 87.75, recording its highest level of $88.00 per barrel.

Technically, the upward trend is still the most likely today, with the continuation of the positive momentum of the simple moving averages that support the upward daily curve of prices, accompanied by clear positive momentum signals on the 14-day momentum indicator.

With oil maintaining positive stability above 85.20, and most importantly, 85.00, this may enhance the possibility of continuing the rise; it is provided that we witness the price consolidation above 88.00, targeting 89.50 as the first target, and then 91.00, an awaited official station.

Below 85.00 will immediately stop attempts to rise and force oil prices to enter a bearish correction wave whose targets start at 83.60 and extend towards 82.30.

Note: Stochastic is around overbought areas and we may witness some fluctuation until we obtain the desired official trend.

Note: Today we are awaiting high-impact economic data issued on the American economy, the “ISM Services Purchasing Managers’ Index,” and we may witness high volatility at the time of the news’s release.

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: 85.20	R1: 88.10
S2: 83.65	R2: 89.50
S3: 82.25	R3: 91.05