Oil may witness attempts to recover 22/9/2023

Mixed trading dominated the prices of US crude oil futures contracts, moving in both upward and downward directions, approaching by a few points the first target published in the previous technical report, 88.20, recording its highest level of 88.40.

Technically, by looking at the 4-hour chart, oil has achieved some upward rebound due to approaching the support level 88.20. The current movements are witnessing stability above the 90.00 level, accompanied by the return of the simple moving averages to hold the price from below and support the possibility of an upward tendency occurring during the coming hours.

Therefore, we may witness attempts to recover, targeting 91.40, considering that price consolidation above the mentioned level is a motivating factor that enhances the chances of visiting 92.40.

Trading stability below 89.40, the 23.60% correction, with at least an hour candle closing below it, will stop the bearish scenario and put the price under negative pressure again, with targets starting at 88.80 and 87.40.

Note: Today we are awaiting high-impact economic data issued, the preliminary reading of the services and manufacturing PMI index in Europe, the UK and the US, 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: 88.80	R1: 91.40
S2: 87.40	R2: 92.40
S3: 86.30	R3: 93.90