Oil needs to monitor price behavior 4/4/2023

Strong rises were witnessed in the prices of US crude oil futures contracts, to start its first weekly dealings on a rising price gap under the influence of the OPEC decision, to record its highest level of $81.50 per barrel.

Technically, By looking closely at the 240-minute chart, we find a conflict between the technical signals. The simple moving averages support the possibility of an upward move. This contradicts the clear negative signs on Stochastic, its entry around overbought areas, and the price gap that has yet to be covered.

We prefer observing the price behavior of oil, above 79.15, and more importantly, 78.90, knowing that breaking the latter would put the price under strong negative pressure, with its target around 77.90 & 76.60.

We should monitor 81.00, and attempts to breach it will increase oil’s gains, so we are waiting for 81.60 & 82.80.

Note: The risk level is high.

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: 79.15	R1: 81.60
S2: 77.90	R2: 82.80
S3: 76.60	R3: 84.10