Oil is under negative pressure 25/1/2023

Strong resistance around 82.20, which formed a strong obstacle in front of US crude oil futures prices, contradicting the positive outlook as we expected, in which we relied on the stability of daily trading above 81.00, explaining that the return of trading stability below 81.00 is capable of postponing the suggested bullish scenario, and we may witness a retest of 80.00/80.30 to record Its lowest level is 79.70.

Technically, looking closely at the 240-minute chart, we find the current trading levels below 81.00, and the 50-day simple moving average begins to pressure the price from above, and this coincides with the stochastic indicator gradually losing bullish momentum.

We may witness a bearish tendency in the coming hours, confirming the breach of 80.00, which facilitates the task required to visit 79.40 initially, taking into consideration that breaking the mentioned level puts the price under strong negative pressure; its next target is 78.30 unless we witness the price consolidation again above 81.40.

Only from above, the upside move and consolidation above 81.40 lead oil prices to restore the official bullish track, to be waiting for 81.80 and 82.50, respectively.

Note: Today we are awaiting the report issued by the International Energy Agency regarding oil stocks, and we may witness an apparent fluctuation in prices.

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: 79.35	R1: 81.80
S2: 78.30	R2: 83.30
S3: 76.90	R3: 84.30