Oil hits resistance 22/8/2023

Futures prices failed to achieve the bullish scenario after colliding with the pivotal resistance level published during the previous technical report at 82.30, explaining that breaching it is a condition for continuing the rise.

Technically, 82.30 formed a strong resistance that forced the price to decline to retest the support floor of the psychological barrier of 80.00. Upon closer look at the 4-hour chart, we find the price stable below the resistance 80.60 23.60% Fibonacci correction and the return of the 50-day simple moving average to pressure the price from the above.

We may witness negative movements in the coming hours, targeting 79.20 as the first target, considering that breaking the mentioned level enhances the chances of continuing the decline, as we are waiting to touch 78.50.

Only from the above price stability will return above 80.60, invalidating the bearish scenario’s activation, and oil will restore the bullish path, with targets starting at 81.40 and 82.40 initially.

Note: Today, we are waiting for the summit of the “BRICS” group throughout the day, and we may witness high price fluctuations.

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: 79.20	R1: 81.40
S2: 78.50	R2: 82.85
S3: 77.10	R3: 83.55