Oil breaks through resistance 30/8/2023

US crude oil futures prices reversed the bearish trend, as we expected, in which we relied on trading stability below the strong resistance level 80.60, at the time of the report’s release. As a reminder, we indicated that the price’s consolidation above 80.70 can thwart the bearish trend and lead oil prices to retest 81.30 & 81.70—recording a high of 81.60

Technically, by closely looking at the 4-hour chart, we notice the price’s stability around its highest level during the early trading of the current session at 81.60, accompanied by the positive impulse of the 50-day simple moving average and signs of bullish momentum.

From here, and with the success of oil prices in confirming the breach of 80.60, there may be a possibility to continue the rise, targeting 82.30 as a first target, and the gains may extend later to visit 83.00.

The return of trading stability below 80.60, with an hourly candle closing at least, can thwart the suggested scenario, and the official bearish trend returns to control oil movements, targeting 80.10 & 78.70.

Note: The risk level may be high.

Note: Today, we are awaiting high-impact economic data issued by the US economy “ADP Employment Change” and “the preliminary reading of the GDP” quarterly, and we may witness a high fluctuation in prices at the time of the news release.

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: 80.10	R1: 82.30
S2: 78.65	R2: 83.05
S3: 77.85	R3: 84.50