Oil needs to be monitored 26/6/2023

US crude oil futures prices touched the official target to be achieved by the end of last week’s trading, as we expected at 67.30, recording its lowest level at $67.03 per barrel.

Technically, with a closer look at the 240-minute chart, the current trading has returned to stability above the support level of 68.30. We notice the continuation of moving below the 50-day simple moving average, which constitutes an obstacle in front of the oil price and meets near the level of 70.00 and adds more strength to it; on the other hand, the indicator Stochastic is trying to gather bullish momentum in preparation for an upward bias.

With conflicting technical signals, we prefer to monitor the price behavior of oil to be facing one of the following scenarios:

To resume the downside trend, we need to witness the confirmation of breaking 68.70, which will facilitate the task required to visit 67.75, the first target, and then 66.30, respectively.

The price consolidated above the resistance of the psychological barrier 70.00, that is a catalyst that enhances chances of recovery towards 70040 & 71.55.

note: The risk level is high and all scenarios are likely to occur.

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: 67.75	R1: 70.40
S2: 66.30	R2: 71.50
S3: 65.10	R3: 73.00