Oil Looking For Clearer Direction

Negative trading dominated the movements of American crude oil within the expected bearish corrective path. We targeted 78.25 levels to record its lowest level around the psychological barrier of 79.00, which forced it to achieve an upward rebound retest of 81.00.

Technically, we find the simple moving averages returned to hold the price below, accompanied by the RSI gaining bullish momentum that increases the possibility of stopping the bearish correction. On the other hand, we find stochastic settling around the overbought areas, which contradicts the above-mentioned technical factors.

Therefore, we prefer to remain neutral until the daily trend becomes clearer, waiting for one of the following scenarios:

To complete the bearish corrective slope, we need to witness a clear break of 80.40, which will facilitate the task required to visit 79.40 and 78.40, respectively.

Suppose oil succeeded in obtaining positive stability above 80.40 and succeeded in stabilizing above 81.70. In that case, this is a sign that the bearish correction tendency will stop and oil will recover so that we will be waiting for 82.20 then 83.00.

Note: The risk level is high

S1: 79.40	R1: 82.20
S2: 77.70	R2: 83.40
S3: 76.50	R3: 85.10