Oil loses momentum 30/5/2023

US crude oil prices attempted to recover by the end of last week’s trading, recording a high of $73.53 per barrel, and tries to rise are still limited after oil failed to stabilize for a long time above the $73.00 level.

Technically, we tend to be negative, but with caution, depending on the clear negative signs on the stochastic indicator, which started to lose bullish momentum and is stimulated by the negative signals from the RSI on the short-term frames.

We may witness a negative trading session, targeting 71.60, Fibonacci correction of 61.80%, as shown on the 4-hour chart, and the price behaviour should be closely monitored around this level due to its importance to the general trend in the short term, and breaking it enhances the chances of a drop towards 71.20, as long as daily trading is stable below 73.20.

Note: the risk level may be high today and close consideration is required.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Consumer Confidence”, and we may witness high price fluctuations 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: 71.80	R1: 73.20
S2: 71.20	R2: 74.10
S3: 70.35	R3: 74.70