Oil Hits Strong Resistance

Oil Futures prices continue to rush upwards, recording the highest level in several years during the previous session’s trading at 83.89.

Technically, 83.80 levels formed a strong resistance that pressured the price to retest 81.80. Thus, technically, we tend to start a bearish technical correction, relying on breaking the bullish trend line, in addition to the clear negativity on the stochastic indicator.

From here, and with steadfast daily trading below the pivotal resistance mentioned above, we are targeting 81.50 as a first target, considering that trading below 81.50 extends the strength of the downside correction so that we can wait for 80.60 initially.

Rising above 83.80 will immediately stop any downside correction attempts and lead the price to the official bullish direction, with a target of 84.75.

S1: 81.50	R1: 83.60
S2: 80.60	R2: 84.75
S3: 79.45	R3: 85.65