Oil is Moving in The Ascending Channel 7/2/2022

Positive trading dominated the prices of US crude oil futures contracts at the end of last week’s trading, recording its highest level last Friday at $93.15 per barrel.

Technically, the bullish trend is still intact. We see oil movements within the ascending price channel; with a careful look at the 240 minutes chart, we notice the positive motive coming from the simple moving averages, which coincides with the positive signs of the 14-day momentum indicator and its stability above the 50 mid-line.

Therefore, the possibility of resuming the rise exists to visit 93.15, knowing that its breach may be a catalyst that increases and accelerates the strength of the bullish trend to visit 94.50 areas as long as the price is stable above the support floor of 91.40.

Trading again below 91.40 may postpone the chances of rising, and we will witness a temporary bearish bias whose primary target is to retest 90.75 and 89.50, respectively.

Note: the level of risk 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: 90.75	R1: 93.30
S2: 89.40	R2: 94.50
S3: 88.20	R3: 95.85