Oil may witness a temporary decline 29/9/2023

Negative trades dominated the prices of US crude oil futures contracts to reflect the upward trend temporarily as a result of the collision with the psychological barrier resistance level of 95.00, explaining during the previous technical report that sneaking below 93.00 leads oil prices to make some random downward movements towards 91.90, recording its lowest level at $91.45 per barrel.

Technically, by looking at the 4-hour time frame chart, we find signs of negativity beginning to appear on the Stochastic indicator, and it began gradually losing upward momentum, in addition to prices stabilizing below the 92.70 resistance level.

Therefore, there is a possibility of a bearish bias during today’s trading session, targeting 90.45, considering that confirmation of breaking the aforementioned level may force oil prices to make a downward correction towards 89.40, the 23.60% correction.

Only from above, a breakup and the price consolidating above the strong resistance 92.75 will immediately stop the proposed bearish scenario and oil will recover with a target of 93.20 and 94.00.

Note: Today we are awaiting high-impact economic data issued by the American economy, the Core Personal Consumption Expenditure Index, and we may witness high fluctuation in prices at the time of the news release.

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: 90.45	R1: 94.05
S2: 89.20	R2: 96.30
S3: 86.90	R3: 97.60