Oil May Have a Temporary Negative Attack 21/1/2022

During the last trading session, random movements dominated US crude oil futures prices after it recorded its highest level around the psychological barrier of 87.00. Then, it returned to trading negatively to end at around 83.70.

Technically, the current moves are witnessing stability below the 84.50 resistance level. In addition, we find the 50-day moving average starting to put negative pressure on the price from above on the short time frames.

There may be a possibility that oil will present temporary negative trading, targeting 82.00, knowing that the awaited bearish bias during the upcoming hours does not contradict the general bullish trend.

We believe that trading above 84.80 can thwart the expected bearish bias and lead oil to the official bullish track, with targets starting at 86.30 and touching 88.80.

Note: the level of risk is high.
Note: IEA report is due today and may cause volatility.

S1: 82.00	R1: 86.30
S2: 80.25	R2: 88.80
S3: 77.70	R3: 90.60