Oil is touching the descending stations, and the selling pressure is valid 1/6/2023

US crude oil prices continued to bleed losses amid intense selling within the strong bearish trend, as we expected, touching the awaited second station at 67.75, recording its lowest level at $67.10 per barrel.

Technically, we find the 50-day simple moving average supporting chances of continuing the decline, the stability of intraday trading below 68.80, and the clear negative signs on the 14-day momentum indicator.

We tend to resume the decline, knowing that the price’s decline below 67.00 increases and accelerates the strength of the bearish trend, paving the way to visit 65.80 and 65.30, respectively, as long as the moves are stable without the resistance of 68.80.

We remind you that closing an hourly candlestick above the resistance above can thwart our expectations, and oil prices may begin to recover to build a rising wave, with targets at 69.70 & 71.00.

Note: The risk level is high, and all scenarios will likely occur.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “the change in private sector jobs,” and the “manufacturing purchasing managers” index, in addition to the report issued by the International Energy Agency regarding oil inventories and we may witness high volatility in prices 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: 67.10	R1: 69.70
S2: 65.80	R2: 71.00
S3: 64.60	R3: 72.30