Oil is trying to build on support 18/7/2023

Mixed trading dominated the movements of the US crude oil futures contracts yesterday, moving in both upward and downward directions, recording the lowest level at 73.89 while the highest around $76.00 per barrel.

Today’s technical outlook, and with a closer look at the 240-minute chart, we find that the price is stable above the main support level for the current trading levels 73.80, Fibonacci correction 50.0%, and oil tries to settle above the 50-day simple moving average, which meets near the mentioned level and adds more strength to it, in addition to the RSI’s attempts to gain more bullish momentum.

Despite the technical factors that support the possibility of a rise, we would prefer to witness the confirmation of breaching the resistance level of 74.80, which is a motivating factor that enhances the chances of a rise, to visit 75.70, the first target, and then 76.20, the next official station.

We remind you that activating the suggested bullish scenario depends on the stability of daily trading above 73.80, and breaking it will immediately stop attempts to rise, and the bearish trend will return control of oil prices, to be waiting for 72.60 initially.

Note: Today we are awaiting high-impact economic data issued by the US economy “retail sales” and from Canada, we await the “consumer price index” 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: 73.80	R1: 75.70
S2: 72.60	R2: 76.95
S3: 71.35	R3: 77.80