Oil: mixed trades require watching closely 9/12/2022

Mixed trading dominated the price movements of US crude oil futures without a clear real direction, recording a low of 71.14 after recording a high of $75.41 per barrel.

Technically, by looking at the 4-hour chart, we find that the simple moving averages continue the negative pressure on the price from above, accompanied by clear negativity features on the stochastic.

Although we tend towards negativity, we prefer to witness a clear and strong break of the support level of 71.70, and that may facilitate the task of visiting 70.30 and 70.00, the awaited bearish targets, taking into consideration that the return of trading stability again above 74.60 is able to turn the trend into a bullish one with an initial target of 77.10.

Note: Today we are awaiting high-impact data issued by the US economy, “the monthly producer price index and the initial reading of consumer confidence,” and we may witness high volatility in prices.

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: 70.30	R1: 74.60
S2: 68.60	R2: 77.10
S3: 66.05	R3: 78.85