Oil May Enter a Bearish Correction

Negative trading dominated the futures price of US crude oil during the previous trading session, after finding a strong resistance level near 58.80.

Technically, the current movements of crude oil show the beginning of entering into a bearish technical correction, and with a closer look at the 60-minute chart, we find the price is stable below the 58.00 barriers, accompanied by a clear retreat in momentum in addition to the negative pressure coming from the 50-day moving average.

Thus, the bearish trend is likely today, targeting 57.40 the first target then 57.10 official stations is awaited, and breaking it will extend oil’s losses and force it to complete the bearish correction to visit 56.50. Activating the suggested scenario requires intraday stability below 58.40.

S1: 57.40	R1: 58.40
S2: 57.00	R2: 59.05
S3: 56.45	R3: 59.45