Oil makes notable gains 1/8/2024

US crude oil futures surged yesterday, reaching a high of $78.70 per barrel.

Technically, the 4-hour chart indicates that oil has moved above the 50-day simple moving average, supporting a positive outlook. Additionally, the price is holding above the 78.00 support level.

Given this stability, the upward trend appears likely to continue, targeting the next levels at 79.80 and 80.00, with potential further gains towards 80.50.

However, if the price falls below 78.00, it could shift the trend downward, leading to a potential retest of 76.30.

Caution: The risk level may be high. Today’s economic data releases, including the Bank of England’s interest rate decision, monetary policy summary, MPC vote on interest rates, and a speech by the Bank of England Governor, as well as US data on unemployment benefits and manufacturing PMI, could result in high volatility.

Caution: The ongoing geopolitical tensions could also contribute to significant price fluctuations.

Disclaimer: This analysis is for informational purposes only and should not be considered as financial advice. The risk level remains high in this market, particularly due to ongoing geopolitical tensions, which could result in heightened price fluctuations.

S1: 76.30	R1: 79.80
S2: 74.00	R2: 81.00
S3: 72.80	R3: 83.35