Oil is facing negative pressure 24/10/2023

Negative trading dominated the prices of US crude oil futures contracts, with a downward correction during the previous trading session. The official target stations were at $ 86.5 and $ 86.00; the lowest level posted was $85.40 per barrel.

Technically, the simple moving averages have begun to exert negative pressure on the price from above, stimulated by the clear negative signals on the Stochastic indicator.

Hence, the stability of daily trading below the extended pivotal resistance level of 87.60/87.50 encourages us to maintain our negative expectation. Breaking 85.40 will facilitate visiting the first target of 84.85 and extending the losses towards 83.70.

Price consolidation above 87.65 will immediately halt the downward correction’s completion, leading oil prices to recover quickly towards 89.30 and 90.40.

The risks are high.

Note: Today we are awaiting high-impact economic data from the Eurozone, the services and manufacturing PMI indexes from Germany and France, and the services and manufacturing PMI indexes and unemployment benefits from the UK.

In the US, the markets await the services and manufacturing PMI index, and we may witness some volatility.

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: 84.85	R1: 87.65
S2: 83.70	R2: 89.35
S3: 82.00	R3: 90.45