Oil needs more consideration 8/8/2023

Mixed trading dominated the prices of US crude oil futures contracts yesterday. As a reminder, we indicated that closing at least an hour’s candle below the support level of 81.80 puts the price under negative pressure to find the price retesting the support of the ascending channel. We ended its daily dealings above the support of 81.80.

Technically, by looking closely at the 4-hour chart, we find signs that indicate a decline in bullish momentum, stimulated by the clear negative signs on the stochastic.

Despite the technical factors that indicate the possibility of a bearish bias during today’s session, we prefer to confirm the break of 81.80, to open the door to visit 81.30, the first target, and then 80.60, an awaited station that might extend its negative targets later, to visit 79.60.

Note: the possibility of a bearish trend will be confirmed once the support above is broken, considering that the official trend is still bullish, with a breach of 82.35, with targets starting at 83.00 and 84.00, respectively.

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: 81.30	R1: 83.00
S2: 80.60	R2: 84.00
S3: 79.60	R3: 84.70