Oil is trying to regain the bullish path 16/2/2023

The price of US crude oil futures witnessed mixed movements during the last trading session to start achieving the expected bearish scenario during the middle of yesterday’s session, touching the required target 77.30, to return to the bullish rebound to test the resistance level of 79.00.

Technically, the price moved back above the 50-day simple moving average, coinciding with the 14-day momentum indicator getting positive signs that stimulate the possibility of a bullish bias during the coming hours.

We tend to be positive but with caution. That requires stability in daily trading above 77.85, targeting 79.70 as a first target, considering that confirming the breach of the mentioned level is a catalyst that enhances the chances of touching 80.30 as the next target.

It should be carefully noted that the price’s breach of the support level of 77.80 will renew the chances of the bearish bias dominating again, paving the way for a visit to 76.70.

Note: Today we are awaiting high-impact economic data issued by the US economy, “the monthly producer 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: 77.85	R1: 79.70
S2: 76.70	R2: 80.30
S3: 76.00	R3: 81.40