Oil Continues to Consolidate 22/2/2022

US crude oil futures prices continue to maintain their gains after moving away from the pivotal support level of 90.00, to record its highest level during the Asian session’s trading at 93.65.

Technically, and by carefully looking at the 60-minute chart, we find the price is stable above the 91.60 resistance level. In addition, the RSI continues to gain bullish momentum, increasing the possibility of more rises.

The bullish scenario might be the most likely, but with great caution, knowing that consolidation above 93.65 is a catalyst that contributes to consolidating oil’s gains to visit 94.00 and 94.40, respectively, as initial targets.

The fall below the previously breached resistance level 91.60 is a fundamental condition to maintain the bullish bias; breaking it may put the price under strong negative pressure, with the initial target of retesting the support floor 90.20.

Note: the level of risk is 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: 90.10	R1: 94.40
S2: 87.55	R2: 96.20
S3: 85.75	R3: 98.75