Oil is stable below resistance 4/10/2023

Mixed trading dominated the prices of US crude oil futures contracts to temporarily reverse the expected downward trend, indicating that the attempt to stabilize trading above 89.40 is leading oil prices to retest 90.40, recording its highest level of $89.23 per barrel.

Technically, oil prices failed to maintain their trading above 90.00, as the intraday movements witness stability below 89.40. This previously broken support has now been transformed into a resistance level represented by the 23.60% Fibonacci retracement, as shown on the 4-hour chart. We find the simple moving averages continuing to support the bearish daily curve.

Stability below 89.40, the bearish scenario remains the most likely during today’s trading session, targeting 87.90 as the first target, and breaking it increases and accelerates the strength of the bearish trend, so we are waiting for 86.60.

Trading stability above 89.40 with the closing of at least an hour candle will immediately stop the proposed bearish scenario and lead oil prices to retest 90.40 and 90.70, respectively.

Note: Today we are awaiting high-impact economic data issued by the US economy: the change in private sector jobs, the services purchasing managers’ index issued by the ISM, the meeting of the OPEC Joint Ministerial Follow-up Committee, and the speech of Christina Lagarde, President of the European Central Bank, and we may witness high volatility at the time of the news release.

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: 87.90	R1: 90.40
S2: 86.60	R2: 91.50
S3: 85.50	R3: 92.70