Oil Faces Conflicting Technical Signals 11/1/2022

US crude oil futures prices declined significantly during the previous trading session, after recording its highest level around 79.50, to return to test the psychological support barrier of 78.00.

Technically, there is a contradiction between the continuation of the movement above the 50-day moving average, which supports the return of the bullish trend and clear negative signals on stochastic besides the stability of intraday trading below 79.40.

Therefore, we prefer to remain neutral until we get more signals waiting for one of the following scenarios:

Rising above 79.50 might increase the probability of touching 80.20 and 80.60, respectively.

Trading below 77.90 puts the price under negative pressure, with a target of 77.10.

Note: the level of risk is high.

Note: CFD trading involves risks; all scenarios may occur.

S1: 77.90	R1: 79.50
S2: 77.05	R2: 80.25
S3: 76.30	R3: 81.10