Noor Trends News, Technical Analysis, Educational Tools and Recommendations
US crude oil futures prices experienced significant losses as the current week’s trading sessions commenced, aligning with the anticipated negative outlook and reaching the targeted level of $70.00. The recorded lowest level was $70.13 per barrel.
Technically, the prevailing sentiment leans towards negativity, with the formation of simple moving averages acting as an impediment. The price remains stable below the resistance of 73.10 and, more broadly, beneath the main resistance for the current trading levels at $73.80.
Considering these technical factors, there is a possibility of the downward trend resuming, particularly if the price breaks below the $70.00 support level. Such a move would strengthen the downward momentum, targeting $69.30 as the initial objective, with potential losses extending towards $68.10.
However, if the price consolidates above $73.80, it would halt the proposed negative scenario, potentially signaling the initiation of an upward wave. Initial targets for such an upward move would be $75.40, followed by an extension towards $76.00.
It’s important to note that the level of risk may be high, especially given the ongoing geopolitical tensions, which could result in increased price volatility. Investors are advised to exercise caution in such circumstances.
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.
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