Oil breaks support 8/3/2023

Negative movements dominated the prices of US crude oil futures contracts, after colliding with the resistance level of 80.90, in addition to the failure of oil to maintain positive stability above the broken support of 79.50.

Technically, we tend to be negative in our trading, relying on breaking the support level of 79.50, which has now turned into a resistance level, accompanied by the stochastic’s loss of bullish momentum and stimulated by the clear negative signs on the RSI.

From here, with steady daily trading below the resistance of the psychological barrier of 78.00, the bearish bias is most likely during today’s trading, targeting 76.20 as a first target and then 75.80 as the next station unless we witness consolidation of the price above 78.00.

The price’s consolidation once again above 78.00 remains fully activating the bearish scenario, and oil regains the bullish track, with an apparent target of 79.50.

Note: Today, we are awaiting high-impact economic data, and we may witness high volatility in prices, and irregular movements may occur:

• ADP Employment Change 

• JOLTS Job Openings in US and Employment Change in Eurozone

• The semi-annual testimony of Jerome Powell, Chairman of the Federal Reserve, before the Senate.



• ECB’s President Lagarde’s speech 

• Bank of Canada interest rate decision and statement.

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: 76.20	R1: 78.00
S2: 74.75	R2: 82.30
S3: 72.40	R3: 83.75