Oil hits resistance 12/9/2022

US crude oil futures prices were able to compensate for part of their losses, to achieve remarkable increases at the end of last week’s trading, within the expected bullish path, surpassing the official target that is required to be achieved at the price of 85.80, recording the highest level of 87.18.

Technically, we find the 50-day simple moving average that started to pressure the price from above, and the stochastic indicator provides negative crossover signals on the 4-hour time frame.

From here, trading below the strong resistance level of 86.40, the bearish bias is more likely today, targeting 83.00, an initial target that may extend later towards 82.00 as long as the price is stable below the mentioned resistance.

The upside move and consolidation above 86.40 will lead the oil to complete the bullish correction, and we are waiting to touch 87.50 and 88.30, respectively.

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: 83.00	R1: 87.50
S2: 80.65	R2: 89.60
S3: 78.55	R3: 91.90