Oil is making notable gains 26/1/2024

US crude oil futures exhibited significant gains in the previous session, in line with expectations, reaching the officially targeted station outlined in the preceding technical report at $77.30 and marking a peak at $77.46 per barrel.

A technical analysis on the 4-hour timeframe chart reveals the continued influence of simple moving averages, providing upward support and contributing to the overall positive trajectory of oil prices. This aligns with positive signals emanating from the 14-day momentum indicator.

With daily trading maintaining a position above the 75.50 level, the prevailing outlook suggests the persistence of the upward trend for the day. Notably, breaching the $77.45 level facilitates the possibility of reaching the initial target at $77.75, and surpassing this level further intensifies and accelerates the strength of the daily upward trend, potentially opening the path directly towards $78.75.

It’s essential to note that slipping below $75.50 and closing at least a one-hour candle may defer the prospects of further gains, though not necessarily negating them entirely. In such a scenario, a retest of $74.20 might be observed before renewed attempts at an upward movement.

Warning:
The level of risk is deemed high, particularly in the backdrop of ongoing geopolitical tensions. This elevated risk may contribute to increased price volatility, prompting traders and investors to exercise caution and employ robust 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: 75.50	R1: 77.75
S2: 74.20	R2: 78.75
S3: 73.30	R3: 80.00