Oil breaks through resistance 21/8/2023

US crude oil futures prices recovered by the end of last week’s trading after a session of successive declines, and the support level of 79.60 succeeded in limiting the bullish tendency to reverse the bearish trend temporarily. As a reminder, we indicated during the latest technical report that the price’s consolidation above 80.80 will immediately stop the bearish scenario and oil will recover, temporarily to retest 81.70 & 82.30, recording a high of $82.13, compensating the selling position.

Technically, by looking closely at the 4-hour chart, we find the simple moving average trying to push the price to the upside and trading stability above the previously breached resistance of 80.80.

Therefore, there is a possibility to continue the rise, provided that we witness the breach of the resistance level of 82.30, and that is a motivating factor that enhances the chances of an increase, as we are waiting to touch 82.80 as the first target, and then 83.70 as a next target.

Only from above, the return of price consolidation again below 80.60, and most importantly 80.30, with at least an hourly candle closing, will immediately stop the suggested scenario, and we aim to retest 81.70 & 79.60.

Note: the risk level may be high.

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: 80.30	R1: 82.80
S2: 78.70	R2: 83.70
S3: 77.80	R3: 85.30