Oil is trying to build support 22/8/2022

US crude oil futures prices achieved the upside, as we expected at the end of last week’s trading, touching the required price station at 92.00, recording its highest level last Friday of $92.08 per barrel.

Technically, and with careful consideration on the 4-hour chart, oil prices found strong resistance at the target represented by the psychological barrier, which forced it to move within a bearish slope, and by looking at the chart, we find oil trying to establish a good support floor around 88.80, working within the ascending channel.

Therefore, the bullish direction may be the most likely during the day, targeting 90.60 the first target, considering that the price’s consolidation above 90.60 is a motivating factor that enhances the chances of visiting 91.65. First, however, we must pay close attention and monitor the price behavior of oil around 91.65 because its breach increases and accelerates the strength of the bullish trend so we will wait 93.20.

The above-suggested scenario requires daily trading to remain above 88.80 and break it. The price stability below it is a 4-hour candle that initially pushes the price to retest 87.50.

Note: Stochastic is still trying to get rid of the current negativity.

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: 87.50	R1: 91.65
S2: 85.65	R2: 93.90
S3: 83.40	R3: 95.70