Oil incurs huge losses 23/6/2023

US crude oil futures prices incurred large losses, invalidating the positive outlook of the previous report, in which we relied on trading stability above 71.55 when the report was issued. As a reminder, we indicated that the closing of the 4-hour candle below 71.50, and most importantly 71.20, invalidates the activation of the bullish scenario completely. The bearish trend regains control over oil movements. With an initial target of 70.10, recording a low of 68.60, compensating for the losses of the buying position.

Technically, with the return of trading stability below the main resistance level 71.55, represented by Fibonacci correction 61.80%, as shown on the chart, which is considered one of the most important keys to the trend in the short term, in addition to the negative intersection of the simple moving averages that continue to pressure the price from above.

Therefore, oil prices may resume the decline, provided that we witness a clear break of 68.30, which enhances the chances of a drop towards 67.30 as a first target, and the losses may extend later towards 65.90.

Closing the 4-hour candlestick above 71.55, Fibonacci correction 61.80%, as shown on the 4-hour chart, nullifies the activation of the bearish scenario completely, and the bullish trend returns to control oil movements, with an initial target of 73.80 Fibonacci correction 50.0%.

Note: The risk level is high and all scenarios are likely to occur.

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: 67.30	R1: 71.55
S2: 65.90	R2: 73.80
S3: 63.30	R3: 75.25