Oil facing selling pressure 28/11/2023

Negative trading dominated US crude oil futures prices, aligning with the anticipated downward trajectory outlined in the previous technical report. The market touched the initial target at 74.75 and extended losses to reach the subsequent station at 74.50, recording a low of $74.00 per barrel.

Examining the 4-hour chart, there are observable negative indications on the Stochastic indicator, which has started to gradually lose its upward momentum. This coincides with the ongoing formation of the simple moving averages, exerting downward pressure on the price.

The current technical outlook suggests the continuation of a negative trend, particularly if intraday trading remains below the psychological barrier of 76.00. This reinforces our negative expectations, with the next target set at 73.80. It’s crucial to closely monitor this level, as a breakthrough would significantly strengthen the downward trend, paving the way for further declines towards 73.00 and then 72.30.

On the contrary, an upward crossover and breach above 76.05 would postpone the likelihood of a decline, potentially leading to attempts at an upward move. In such a scenario, initial targets would start at 77.10.

Traders are advised to exercise caution, considering the potential high risk associated with market conditions, especially amid ongoing geopolitical tensions, which may contribute to increased price volatility.

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: 74.00	R1: 76.05
S2: 73.00	R2: 77.15
S3: 71.90	R3: 78.10