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US crude oil futures prices have established a robust support level, notably around the previously specified target in the prior report at $75.10. The lowest recorded level stood at $75.25, experiencing an upward rebound with the intention of retesting the psychological barrier resistance at $77.00.
Despite the upward movement observed at the conclusion of the previous week, a cautious stance towards negativity is adopted. This is grounded in the persistence of daily trading below the key resistance level of $77.85 and the continued movement below the simple moving averages, which remain a hindrance to further price advancement.
Consequently, the bearish scenario retains its preference, setting a target at $75.80 as the initial goal. A breach of this level would extend oil’s losses, with anticipation for a decline towards $74.30, and potentially extending further to $73.80, marked as an official station.
On the flip side, only a decisive break above $77.85, accompanied by the consolidation of the price for at least an hour candle, has the potential to thwart the bearish scenario entirely. In such a case, oil prices could recover, aiming towards $78.25 and $79.20.
It’s essential to note that the risks are elevated, with geopolitical tensions persisting, indicating a potential for heightened price volatility.
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.
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