Oil breaks through resistance and rises cautiously 27/10/2022

US crude oil futures prices reversed the expected bearish trend during the latest analysis after the report issued by the International Energy Agency on oil inventories, recording extended gains around $88.47 per barrel.

Technically, today, the current moves are witnessing stability above the previously breached resistance level, which is now turned to the support level at 86.60, accompanied by the positive motive of the 50-day simple moving average.

Therefore, the possibility of a rise during today’s session is only possible, we need to witness cohesion in the price above 88.50 to motivate the price to achieve more gains towards 89.60, a first target, and gains may extend later to visit 90.00 as long as the price is stable above 86.60.

Note: The risk level is high.

Note: The euro rate decision and European Central Bank press conference are due today. They have an important impact, and we may witness high price volatility and erratic movements.

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: 85.40	R1: 89.65
S2: 82.60	R2: 91.20
S3: 81.05	R3: 93.95