Oil is trying to form a rising wave 2/1/2024

The most recent technical analysis report suggests that triggering selling positions hinges on breaking the 73.30 level, potentially initiating a downward trajectory for oil. In this scenario, the initial targets lie at 72.50, with the possibility of reaching its lowest point at $71.30 per barrel.

From a technical standpoint, our inclination is towards a positive outlook in trading, supported by the 14-day momentum indicator providing positive signals. Additionally, the robust support floor at 71.00 adds further confidence to this perspective.

This positive stance opens up the potential for an ascending wave, with the initial target set around 73.70. Notably, a breach of this level may pave the way for further gains, with the next target anticipated at 74.20.

However, it’s important to remain cautious. Only a return to trading stability below 71.00 would immediately halt any upward attempts and steer oil towards the continuation of a downward trajectory, with targets beginning at 68.10.

Risk levels should be approached with vigilance, especially considering the ongoing geopolitical tensions. There is a potential for high price volatility, and traders are advised to exercise caution in light of these factors.

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: 74.25
S2: 69.70	R2: 75.80
S3: 68.10	R3: 77.30