Oil is waiting to break through the resistance 5/7/2023

US crude oil futures prices witnessed a cautiously upward trend, recording its highest level during the previous trading session at around $71.32 per barrel.

Technically, we are positive depending on the positive impulse coming from the simple moving averages that have returned to hold the price from below, and this comes in conjunction with the clear positive signs on the 14-day momentum indicator on the 60-minute time frame.

From here, with trading steadily above the strong support level 69.90/70.10, the bullish bias is more likely. We need to witness a clear breach of the main resistance level for the current trading levels of 71.55, Fibonacci retracement of 61.80%, and that accelerates the strength of the bearish daily trend, opening the door towards 72.10 & 72.80. Later, it will extend towards 73.40.

Closing the hourly candlestick below 69.90 can thwart the bullish scenario, and the bearish trend will regain control over oil movements, touching 69.35 & 68.70 as initial targets.

Note: Today we are awaiting high-impact economic data issued by the US economy, “the Federal Reserve Committee statement,” and the “OPEC meeting”, and we may witness high volatility at the time of 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: 70.10	R1: 71.45
S2: 69.35	R2: 72.10
S3: 68.70	R3: 72.80