Oil is waiting for a new signal 14/9/2022

We adhered to intraday neutrality during the previous report due to the conflicting technical signals, explaining that activating the bullish path depends on confirming the breach of the 88.40 resistance level to enhance the chances of a rise towards the first target 89.45, recording the highest level of 89.30 during mid-trading before starting to decline after the US inflation data that led the US dollar for height.

Technically and carefully considering the 240-minute chart, we find the 50-day simple moving average trying to provide a positive stimulus and support the return of the rise. On the other hand, stochastic is giving negative signals and losing bullish momentum.

With technical signals conflicting, we prefer to monitor the price behaviour for the second consecutive session, to be in front of one of the following scenarios:

To get a bearish trend, we need to witness a clear and robust break of the 85.80 support floor, targeting 85.10 and 84.85, with awaited targets that may extend later towards 83.50.

Resuming the bullish path again depends on the ability of oil prices to consolidate above 87.10, which is a catalyst that enhances the chances of touching 88.10 and 89.00.

Note: We are waiting for US inflation data “Producer Price Index,” which has an impact, and we may witness high price fluctuations.

Note: the risks are high.

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: 84.85	R1: 89.10
S2: 82.90	R2: 91.30
S3: 80.70	R3: 93.30