Oil may witness a corrective decline 20/9/2023

US crude oil futures prices reflected the expected bullish trend during the previous report, touching the stop loss order published at 91.30. As a reminder, we indicated that breaking the aforementioned level postpones the proposed bullish scenario, and we may witness a simple bearish correction aimed at retesting 90.20, recording its lowest level at $89.41 per barrel.

Technically, with a closer look at the 240-minute time frame chart, we notice negative signs beginning to appear on the 14-day momentum indicator, accompanied by the Stochastic indicator gradually losing upward momentum.

From here, with steady trading below the previously broken support at 91.30 and most importantly 91.75, oil prices may begin a downward correction, with initial targets around 88.55 and 87.40, respectively.

From the top, the breakup and the price consolidating again above 91.75 leads oil prices to complete the official upward path, with targets starting at 92.60 and 83.80.

Note: Today, we are awaiting high-impact economic data issued by the American economy “the Federal Reserve Committee statement, the interest rate decision and forecast, followed by a press conference. We may witness high price fluctuations at the time the news is released.

Note: 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: 88.55	R1: 91.75
S2: 87.35	R2: 93.80
S3: 85.40	R3: 95.00