Oil is under negative pressure 25/8/2023

Mixed trading dominated the prices of US crude oil futures contracts yesterday, touching the official bearish target to be achieved at 77.60, recording its lowest level at $77.65 per barrel.

Technically, and looking at the 4-hour chart, prices tried to take advantage of the mentioned support level represented by the target 77.60 within a limited bullish bounce, and the current movements are witnessing stability around 79.25, the simple moving average 50 days still constitutes an obstacle against the price, stimulated by the clear negative signs on the stochastic indicator.

Therefore, the bearish trend remains the most likely during today’s trading, knowing that the decline below 78.00 facilitates the task of visiting 79.00 as the first target, knowing that breaking the mentioned level enhances the chances of continuing the decline to visit 76.50 as the next target, unless we witness the price’s intraday stability above 79.80.

Only from the top, it crossed upwards, and the price’s consolidation above 79.85 postpones the chances of a decline but does not cancel it. We may witness a temporary bullish tendency, aiming to retest 80.60 before starting the decline again.

Note: Today we are awaiting economic data from “Jackson Hole Economic Forum”, “Speech by Lagarde, President of the European Central Bank” and “American Consumer Confidence from the University of Michigan”, and we may witness high volatility 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: 78.10	R1: 79.85
S2: 76.95	R2: 80.55
S3: 76.30	R3: 81.55