Oil is under selling pressure 21/2/2023

US crude oil futures prices incurred significant losses by the end of last Friday’s trading week after dealers abandoned the long-term position, recording a low of $75.36 per barrel.

Technically, we are negative depending on the stability of daily trading below the strong resistance level of 78.00, accompanied by the negative pressure of the Simple Moving Average and the negative signals from the RSI on the 60-minute time frame.

Therefore, the bearish slope is the most preferable during today’s session, knowing that trading below 76.50 facilitates the task required to visit 75.30 as the first target. The losses may extend later to visit 74.00.

Stability in daily trading below 78.10 is a prerequisite for activating the suggested scenario above, and an attempt to breach it will immediately stop the expected bearish tendency. Oil will recover to retest 79.00 & 79.60.

Note: the risk level may be high today.

Note: Today we are awaiting high-impact economic data issued by the US economy “Services PMI”, and we may witness high volatility during 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: 75.30	R1: 78.10
S2: 73.90	R2: 79.60
S3: 72.40	R3: 80.90