Oil is trying positively 22/6/2023

We adhered to intraday neutrality during the last report due to conflicting technical signals, explaining that the price’s consolidation above the primary resistance of the current trading levels located at 71.55 is leading oil to record gains, starting at 72.60, to succeed in touching the target, recording its highest level of $72.70 per barrel.

Technically, by looking closely at the 4-hour chart, we find the price stable above 71.55 resistance, represented by a Fibonacci correction 61.80%, as shown on the chart, and we find the simple moving averages support the possibility of an ascension in conjunction with the positive signs of the RSI.

Therefore, the possibility of continuing the rise exists, taking into consideration that the price’s consolidation above 72.70 is a catalyst factor that increases and accelerates the strength of the bullish bias, opening the door to 73.00, and then 73.80 50.0% correction as the next official station.

Closing the 4-hour candlestick below 71.50, and most importantly 71.20, completely invalidates the activation of the bullish scenario, and the bearish trend regains control over oil movements, with the initial target 70.10.

Note: Stochastic is overbought, and we may witness some fluctuation until we get the desired direction.

Note: Today we are awaiting high-impact economic data issued by the British economy, “the interest rate decision and monetary policy summary,” and from the United States, we await the testimony of the Federal Reserve Chairman “about the semi-annual monetary policy report before the House Financial Services Committee. We may witness a high price fluctuation during 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: 71.20	R1: 73.05
S2: 70.10	R2: 73.80
S3: 69.30	R3: 74.90