Oil needs to be monitored 26/5/2023

US crude oil futures declined, invalidating the positive outlook as we expected, in which we relied on trading stability above 73.40, touching the stop loss order, and recording a low of 71.04.

Technically, the current movements are stable below the previously broken support at 71.55, represented by 61.80% Fibonacci correction, as shown on the chart, and we notice the return of the simple moving averages to pressure the price from above, in addition to the negative signals coming from the 14-day momentum indicator.

We may witness a trading session in negative areas, targeting 70.40 and 70.00, respectively, as expected official stations during the day. Still, we must carefully consider if oil prices regain consolidation above 71.50, with an hourly candle closing above the mentioned level. This may change the expected direction and lead oil to build a rising wave, targeting 73.70. .

Note: the risk level may be high today.

Note: Today, we are awaiting high-impact economic data issued by the US economy, “personal consumption spending,” and we may witness high price fluctuations 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: 70.40	R1: 73.70
S2: 69.05	R2: 75.65
S3: 67.10	R3: 77.00