Oil fails to break through the resistance 16/9/2022

Divergent movements dominated the prices of US crude oil futures yesterday, after it failed to confirm the breach of the pivotal supply area published during the previous analysis at 89.10, explaining that it is an important and basic condition for the continuation of the rise, which forced it to move negatively again. we indicated that the decline below 88.00 leads Oil prices for a quick retest of the 86.50 area, recording a low of 84.40.

Technically, oil prices achieved a clear break of the 88.00 support level, confirming the intraday stability below 86.30. We find the simple moving averages returned to pressure the price from above and support the possibility of a drop in the coming hours.

Therefore, the bearish bias might be the most preferred, targeting 84.40 first target, taking into consideration that the decline below 84.00 increases and accelerates the strength of the bearish bias so that we will be waiting for 83.50 and 83.00 awaited bearish targets as long as the price is intraday stable below 86.30.

Consolidation above 86.30 leads oil to retest the previously broken support and now turned to the resistance level at 88.00.

Note: The risk level may be 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: 83.45	R1: 88.15
S2: 81.55	R2: 91.00
S3: 78.70	R3: 92.85