Oil is under negative pressure 22/2/2023

A downward trend dominated the price movements of US crude oil futures contracts during the previous trading session, within the path of quiet trading, and now hovering below the support level of 76.50.

Technically, the 50-day simple moving average still constitutes a negative pressure factor on the price from above and is accompanied by clear negativity features on the stochastic on the 4-hour time frame.

We tend to be negative, but with caution, knowing that confirming a break of 76.00 will facilitate the task required to visit the first target of 75.60 and then 75.00, respectively, unless we witness any trading and price stability above 77.30.

Consolidating oil prices above the resistance level of 77.30 will immediately stop the suggested bearish scenario. Then, the price will recover, retesting 78.20 before determining the next price destination.

Note: The report issued by the International Energy Agency regarding oil stocks has been postponed to tomorrow’s session.

Note: Today we are awaiting the “results of the Federal Reserve Committee meeting” and may witness high price fluctuations.

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: 75.60	R1: 77.25
S2: 74.95	R2: 78.20
S3: 73.95	R3: 78.90