Oil breaks through resistance 12/1/2023

Positive trades dominated the prices of US crude oil futures contracts, invalidating the official bearish scenario as we expected after it managed to build on stability above the support level of 74.30 and after succeeding in breaching the resistance of 75.60, explaining that the rise above 75.60 can thwart the suggested bearish scenario, and we may witness an upward trend targeting 76.80, recording a high of 77.90.

Technically, the simple moving averages returned to provide a positive motive, and the 50-day average meets near the resistance-into-support support level of 75.60, adding more strength to it, which comes in conjunction with oil getting positive signals from the relative strength index.

There is a possibility of an upward bias during today’s session, targeting 78.80 as the first target. Its breach is a catalyst factor that enhances the chances of expanding gains towards 80.10 as long as trading remains stable above 75.60.

Note: Today, markets are awaiting US inflation (consumer price index) data, which may lead to price volatility.

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: 75.30	R1: 78.80
S2: 73.10	R2: 80.10
S3: 71.70	R3: 82.35