Oil May Reverse to The Upside 27/1/2022

US crude oil futures prices exceeded the official bullish target required to be touched during the previous technical report, at 87.00, to record the highest level of 87.93.

Technically, oil prices witnessed a bearish tendency after approaching the resistance level of the psychological barrier of 88.00. With careful consideration on the chart, we find that the 14-day momentum indicator started sending clear negative signals, accompanied by the negativity of the stochastic indicator, which began to lose the bullish momentum.

Therefore, there may be a possibility of a bearish bias, as long as trading remains below the resistance level 87.00, and most importantly 87.30, knowing that the decline below 85.20 forces oil prices to trade in a strong bearish context, targeting 83.75 as long as the price is stable below 87.30.

Note: the risk level may be high today.

Note: CFD trading involves risks; all scenarios may occur.

S1: 85.20	R1: 88.00
S2: 83.75	R2: 89.40
S3: 82.40	R3: 90.80