Oil: Making noticeable gains, Looking for momentum 19/8/2022

US crude oil futures prices jumped to achieve noticeable gains within the previously expected track during the previous report, exceeding the required official target 90.00, recording its highest level during the morning session of 91.00.

Technically, by looking at the 4-hour chart, we find the simple moving averages returned to hold the price from below, as we find the price achieved an intraday pivot above the 89.00 support floor.

Despite the technical factors that indicate the possibility of resuming the rise, we prefer to witness a consolidation again above 91.00, which facilitates the task required to visit 91.45, a first target, and then 92.00 a next station, as long as the price is stable above 89.00.

The return of trading stability below 89.00 delays the chances of rising. Oil may show a bearish bias that aims to retest the 50-day moving average at 87.70 before attempting to rise again.

Note: Stochastic is trying to get rid of the current negativity.

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: 87.60	R1: 91.45
S2: 85.40	R2: 93.20
S3: 83.70	R3: 95.30