Oil May Witness a Downward Trend 6/1/2022

Oil prices achieved noticeable gains in the middle of the previous trading session, within the expected bullish path, achieving the required targets to be touched around 78.40, to record its highest level around 78.56.

Technically, and by looking at the 4-hour chart, we notice the price stability below the simple moving averages that started to pressure the price negatively, and we also notice that there are some clear negative features on the stochastic indicator.

We tend to the negativity, but with caution. We may witness a retest of 76.00/76.10, bearing in mind that the declining below the mentioned level may increase the probability of visiting 75.30.

A breach up to the resistance level of 78.10 might cancel the bearish bias in the coming hours and restore oil to its recovery with an initial target of 79.30.

Note: The bearish slope does not contradict the general upward trend. Note: the risk level is high

S1: 76.10	R1: 78.10
S2: 75.25	R2: 79.35
S3: 74.00	R3: 80.20