Oil is Losing Momentum

US crude oil futures prices witnessed negative movements within the expected bearish path during the previous analysis, posting a low at 38.50.

Technically, with the intraday trading remaining below 39.20 and the most important 39.50, which is accompanied by the continued negative pressure of oil from the simple moving averages, in addition to the RSI gaining bearish momentum over the short time intervals.

This encourages us to maintain our negative view targeting 38.20 as an initial target, knowing that breaking it confirm the strength of the bearish trend, so that we will be waiting for 37.70 initially.

Activating the bearish scenario depends on price stability below the resistance level of 39.50, and surpassing it upwards is capable of negate our bearish expectations and leads oil to a bullish path with the aim of re-testing the resistance level 40.00 then 40.40.

Warning: We are awaiting Data from the International Energy Agency (EIA) later in today’s session, and prices may be affected.

S1: 38.20	R1: 39.50
S2: 37.70	R2: 40.40
S3: 36.90	R3: 40.80