Oil is facing heavy selling 13/6/2023

US crude oil futures prices incurred significant losses during the last session’s trading within the expected downside trend. It touched the official target station at 67.80, recording its lowest level at $66.8 per barrel.

Technically, by looking at the 240-minute chart, we find the continuation of the negative intersection of the simple moving averages as an obstacle to the prices, and this comes in conjunction with the negative signals coming from the relative strength index and its stability below the mid-line 50.

From here, with steady daily trading below the previously broken support of 69.50, the bearish scenario remains the most likely, knowing that infiltration below 66.85 facilitates the task required to visit 66.10, and the losses may extend later towards 64.80.

Activating the suggested bearish scenario above depends on the stability of the price below 69.50, and its breach leads oil prices to recover, to retest 71.55, Fibonacci correction of 61.80%, as shown on the chart.

Note: Today, we are awaiting high-impact economic data issued by the US economy “consumer price index” and from the United Kingdom “Bank of England governor’s speech,” we may witness high volatility at the time of the news release.

Note: The risk level is high, and all scenarios will likely 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: 66.10	R1: 69.50
S2: 64.80	R2: 71.55
S3: 62.75	R3: 72.85