Oil is rushing higher 16/10/2023

A substantial rise in the prices of US crude oil futures contracts, achieving strong gains after it succeeded in consolidating above the resistance level of 85.10, touching the required upward target at the price of 86.40, recording its highest level of $87.80 per barrel.

Technically, by looking at the 240-minute time frame chart, the price succeeded in basing itself on the 85.10 support level, accompanied by the positive motivation of the 50-day simple moving average, stimulated by positive momentum signals.

As long as trading remains above the previously breached resistance and turns into a support level at 85.10, there may be a possibility of resuming the upward trend to visit the first target of 89.20, and the gains may extend later towards 90.70.

Below 85.10 and more importantly, 84.80 will immediately stop the upward trend and we will rapidly decline towards 83.50 and 82.00.

Note: The level of risk may be 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: 84.80	R1: 89.20
S2: 81.90	R2: 90.70
S3: 80.40	R3: 93.60