Oil: Facing Selling Pressure

Mixed trades dominated the movements of US crude oil futures yesterday. As a result, we adhered to intraday neutrality during the previous analysis, explaining that we are waiting for confirmation of breaking the 82.60 support level to target 81.00 to record oil at its lowest level at 80.78.

Technically, we find the simple moving averages continuing the negative pressure on the price, in addition to the stability of the intraday trading below the previously broken support-into-resistance level 82.60, in conjunction with the RSI losing the bullish momentum.

Therefore, the bearish bias may be the most preferred today, targeting 80.60 first target, considering that breaking the mentioned level increases the selling pressure on oil and opens the door to visit 79.50, a next station, whose negative targets may extend later to visit 78.70.

Rising above 82.70/82.60 will negate the activation of the suggested bearish scenario, and oil will recover from retesting the pivotal resistance level of 83.80.

Note: The risk level is high.

S1: 80.60	R1: 83.40
S2: 79.45	R2: 84.80
S3: 77.80	R3: 86.10