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US crude oil futures experienced significant losses in the early trading sessions of this week, reaching the projected targets from the previous report at 76.40 and 75.95, and coming close to the next target of 75.10, with a low of $75.39 per barrel during this morning’s trading.
Technically, the 4-hour chart indicates that oil has confirmed a break below the support level of 77.30. The persistent negative pressure from the simple moving averages continues to weigh on prices.
Given these conditions, as long as daily trading remains below 77.30, the downward trend is likely to persist. The next target is 74.70, and a break below this level could extend losses towards 74.00.
However, if the price breaks above and holds above 77.30, this scenario could be invalidated, potentially leading to a recovery in oil prices, with an initial target of 78.40.
Caution: The release of the “Consumer Confidence” report from the US, along with ongoing geopolitical tensions, could lead to significant price volatility. Exercise caution as the risk level may be high.
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.
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