Oil is looking for an opportunity to expand gains 13/2/2024

Record Highs and Technical Optimism

In the previous trading session, US crude oil futures soared, reaching a peak of $77.08 per barrel. Technically, a positive outlook prevails, supported by consistent movement within an ascending price channel depicted on the 4-hour chart, alongside encouraging signals from the simple moving averages.

Preferred Upward Trajectory

With daily trading maintaining above the $76.00 mark, the upward trend remains favorable. Initial targets lie at $77.60, with potential breakthroughs leading to further gains towards $78.10, and eventually $79.10.

Risks and Reversals

Confirmation of a break below the $76.00 support level could disrupt this bullish scenario, temporarily shifting oil prices into a downward trend, targeting a retest of $75.00.

Warnings Amid Economic Events and Geopolitical Uncertainties

Investors should exercise caution due to the release of high-impact economic data from the U.S. and U.K., including core CPI figures and the change in unemployment benefits index. Additionally, ongoing geopolitical tensions may contribute to heightened price volatility, necessitating risk management strategies.

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: 76.00	R1: 77.60
S2: 75.05	R2: 78.10
S3: 74.50	R3: 79.10