Oil may resume the bearish correction 18/8/2023

The price of US crude oil futures witnessed an upward trend yesterday after several successive sessions of decline, benefiting from the support of the psychological barrier at 79.00 to provide some bullish bounce to retest the $81.00 level.

Technically, looking closely at the 4-hour chart, we find the price stable below 80.70, achieving a strong breach of the mentioned level, which turned it into a strong resistance level, in addition to the continuation of the relative strength index, which continues to provide signs of declining momentum on the short time frames.

Therefore, the resumption of the corrective decline is still present and effective, the condition of infiltration below 79.00, to facilitate the task required to visit 78.40, an initial station whose targets extend later towards 77.50 and 76.60.

Only from above price stability will return above 80.60, and more importantly, 80.80, with at least a 4-hour candle closing, that will immediately stop the suggested bearish scenario. Oil will recover temporarily to retest 81.70 & 82.30.

Note: the risk level may be high.

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: 79.35	R1: 81.40
S2: 78.15	R2: 82.30
S3: 77.30	R3: 83.40