Oil is trying positively 22/12/2023

Mixed trading characterized the prices of US crude oil futures contracts, exhibiting fluctuations in both upward and downward directions. Amidst yesterday’s trading, it successfully retested the target at 73.10, reaching its lowest point at 72.45. Subsequently, it initiated an upward rebound around the resistance level of 74.90, achieving a peak at $74.72 per barrel.

From a technical standpoint, a positive outlook is favored, supported by the price’s stability above the simple moving averages, which have resumed carrying the price from below. This positive sentiment aligns with clear signals on the 14-day momentum indicator.

Consequently, the potential for an upward trend in the coming hours remains valid and effective, contingent upon a distinct and robust breach of the 74.90 resistance level. Such an event would act as a motivating factor, intensifying the ascent towards 75.40 as a primary target, with the possibility of extending gains later towards 72.60.

Intraday stability below 73.10, confirmed by the hourly candle closing, would disrupt the proposed bullish scenario, subjecting oil to negative pressure. Downside targets in this scenario commence at 72.40, followed by 71.70, before potential attempts at a subsequent rise.

Warning: Today, high-impact economic data is expected from the American economy, including the “annual/monthly core personal consumer spending prices” and “Consumer Confidence” issued by the University of Michigan. From the United Kingdom, we anticipate the release of the “Retail Sales” indicator.

Concerning the Canadian economy, the monthly “Gross Domestic Product” index is noteworthy. Significant price volatility may occur at the time of 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: 73.20	R1: 75.40
S2: 71.65	R2: 76.20
S3: 70.85	R3: 77.60