Oil Continues The Bullish Direction 20/1/2022

US crude oil futures prices achieved more gains within the expected bullish path mentioned in the last report, posting its highest level around the target of 86.80.

Technically, the RSI’s defense of the bullish trend and its stability above the mid-line 50 increases the possibility of achieving more gains, in addition to the price’s building above the support floor of 84.70, in addition to the regular movements within the bullish price channel shown on the chart.

Therefore, there is a possibility of touching 86.80, the first target, considering that the breach of the mentioned level increases the strength of the bullish trend and extends the gains towards 87.80.

Breaking 84.70 will stop the bullish scenario, and we may witness a bearish bias, with its initial target around 83.70 & 82.70.

Note: the level of risk is high.
Note: IEA report is due today and may cause volatility.

S1: 84.75	R1: 86.80
S2: 83.70	R2: 87.80
S3: 82.65	R3: 88.80