Oil is incurring huge losses, and selling pressure is in place 31/5/2023

In the expected bearish context, US crude oil futures prices incurred significant losses yesterday, surpassing the bearish targets required to be achieved at 71.20, recording its lowest level at $69.07 per barrel.

Technically, the 50-day simple moving average supports opportunities to continue the decline, in addition to the stability of trading below the main resistance level 71.55 represented by 61.80% Fibonacci correction, as shown on the chart.

Therefore, we hold onto our negative expectations, continuing towards the next target 68.60. We must monitor the price behavior of oil around this level, due to its importance, and breaking it increases and accelerates the strength of the bearish trend, as we are waiting to touch 67.75 and 66.30, respectively.

We remind you that the return of trading stability and the price’s consolidation above 71.55 will immediately stop the bearish scenario. Oil prices will start trying to build a rising wave, targeting 72.00 & 73.20.

Note: the risk level is 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: 67.75	R1: 72.00
S2: 66.30	R2: 74.80
S3: 63.50	R3: 76.30