Oil is looking for additional gains 24/5/2023

The futures prices of US crude oil witnessed a trading session in the green areas, heading to record the first weekly gain in almost a month, touching $73.93 per barrel.

Today’s technical side indicates the possibility of continuing the rise, relying on the bullish technical formation shown on the 4-hour chart, the “double bottom”, and the positive impulse for oil from the simple moving averages, which returned to hold the price from below.

From here, with steady daily trading above 72.60, and most importantly 72.30, the bullish bias is the most favorable, knowing that the breach of 73.80 is a motivating factor that enhances the chances of rising to visit 74.50 as the first target, and then 75.30, and the gains may extend later towards 76.30.

Sneaking below 72.30 is able to thwart the suggested scenario completely, and oil prices return to the downside path, with an initial target of 71.50.

Note: Today we are awaiting highly sensitive economic data issued by the US economy, “the results of the Federal Reserve Committee meeting,” the speech of the US Treasury Secretary, and we are awaiting “inflation” data from the United Kingdom and the talk of the “Governor of the Bank of England,” in addition to the report issued by the International Energy Agency regarding Oil stocks, and we may witness high volatility in prices at the time of the news release.

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: 72.35	R1: 74.50
S2: 70.95	R2: 75.30
S3: 70.20	R3: 76.70