Oil is successfully testing support 10/5/2023

Mixed trading dominated the prices of US crude oil futures contracts yesterday, but the pivotal support level published during the previous report, located at 71.40, was able to limit the bearish tendency to force oil to rebound upwards again, and the current movements are witnessing stability around $73.20 per barrel.

Technically, by looking at the 240-minute chart, oil is stable above the main support of 71.40, accompanied by the positive impulse of the 50-day simple moving average, which supports the possibility of an ascension.

From here, with steadfast trading above 71.40, the bullish scenario remains valid and effective, targeting 74.10/74.00 as a first target, and breaching it increases and accelerates the strength of the bullish daily trend to enhance the chances of rising towards 75.10 next station, whose bullish targets may extend later towards 75.60.

Sneaking below 71.40 is able to completely fail the suggested scenario, as we witness negative pressure on oil prices, with a target of 70.00.

Alert: Stochastic is around overbought areas in an intraday basis, and we may witness some fluctuation until the expected direction is obtained.

Warning: Today we are awaiting high-impact economic data issued by the US economy, “US inflation data, consumer price index,” and we may witness high price fluctuations at the time of the news release.

Caution: The level of risk is high and does not match the expected return, and careful consideration is required, bearing in mind that all scenarios are likely to occur.

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: 71.70	R1: 74.10
S2: 70.45	R2: 75.10
S3: 69.45	R3: 76.40