Oil breaks support 15/11/2022

US crude oil futures prices managed to achieve the first target mentioned during the previous analysis at 89.65, recording the highest level at 89.82, to find a strong resistance level that forced it to trade negatively during the middle of the American session yesterday.

Technically, the simple moving averages started to pressure the price from above, and the 50-day average met around 88.50, adding more strength. Unfortunately, this comes in conjunction with the negative features that dominate the stochastic indicator.

We may witness a bearish tendency in the coming hours, provided that the 85.00 break is confirmed, which will extend the oil losses, opening the door to visit 83.75, a first target whose negative targets may extend towards 82.75 later.

Consolidation above 88.50 will stop the bearish scenario and lead oil to recover again, targeting 90.75 and 91.50, respectively.

Note : the level of risk is high.

Note: Monthly US inflation data is due today in “Product Price Index”, and we may witness clear price fluctuations.

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: 83.75	R1: 88.45
S2: 82.00	R2: 91.50
S3: 79.05	R3: 93.15