Oil is trying to hold above the resistance 6/7/2023

Mixed movements in both directions dominated the prices of US crude oil futures contracts, heading to visit the first target 72.10, recording a high of 72.13, after it managed to breach the main resistance mentioned during the previous report at 71.55.

Technically, we are positive depending on the positive impulse coming from the simple moving averages that have returned to hold the price from below, and this comes in conjunction with the clear positive signs on the 14-day momentum indicator on the 60-minute time frame.

From here, with stable trading above 70.60, the bullish bias is more likely. We only need to witness a clear breach and price stability above the main resistance of the current trading levels 71.55, Fibonacci correction of 61.80%, and that accelerates the strength of the bearish daily trend, opening the door towards 72.40 & 72.80, initial targets that may extend later towards 73.10.

We remind you that closing the hourly candlestick below 70.50 can thwart the bullish scenario, and the bearish trend will regain control over oil movements, touching 69.65 & 68.90 as initial targets.

Caution: Today we are awaiting high-impact economic data issued by the US economy, “jobs data in the non-agricultural private sector,” “vacant jobs and labor turnover,” service purchasing managers, “OPEC meeting,” and “the report issued by the International Energy Agency on oil stocks.” We may witness high volatility at the time of issuance of the news.

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: 70.65	R1: 72.40
S2: 69.65	R2: 73.10
S3: 68.90	R3: 74.10