Oil is waiting for a move signal 27/6/2023

We remained neutral during the previous technical report due to a conflict between the technical signals to find that oil prices did not witness noticeable movements in the last session within a narrow sideways path, and the current movements witness stability around $69.70 per barrel.

Technically, the contradiction between the technical signals is still present, and we find the stochastic indicator around the overbought areas, which increases the possibility of a decline. On the other hand, the 14-day momentum indicator is trying to obtain positive signs that might push the price to the upside.

With conflicting technical signals, we prefer to monitor the price behaviour of oil for the second session in a row, to be facing one of the following scenarios:

To resume the bearish trend, we need to witness the confirmation of breaking 68.70, which facilitates the task required to visit 68.30, the first target, and then 67.70, respectively.

The price consolidated above the resistance of the psychological barrier 70.00, that is a catalyst that enhances the chances of recovery towards 70.40, and 70.90 initially.

Note: Today we are awaiting high-impact economic data issued by the US economy, the “Consumer Confidence Index,” and we may witness high volatility at the time of the news release.

Note: The risk level is high and all scenarios are likely to occur.

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: 69.00	R1: 70.40
S2: 68.20	R2: 70.90
S3: 67.60	R3: 71.70