Oil needs to monitor price behavior 6/4/2023

Due to conflicting technical signals, we adhered to intraday neutrality during the previous technical report, explaining the importance of monitoring the price from below 79.20 and above 80.85.

Technically, prices failed to stay long above the resistance level of 80.85. Therefore, the stochastic indicator gradually lost bullish momentum, supporting the possibility of a decline. On the other hand, the price is still stable above the floor of the support of the psychological barrier of 80.00, accompanied by the positive motive of the 50-day simple moving average, in addition to not covering the price gap. So far.

As the technical signals continue to conflict, we prefer to monitor the price behavior for the second consecutive session due to the high rate of risk compared to the expected return, to be facing one of the following scenarios:

The price’s decline below 80.00 leads oil prices to visit 79.65 and 78.95, respectively, while the breach upwards and the price’s consolidation above 80.85 renews chances of a rise towards 81.82 and 82.50, the main expected targets.

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: 79.65	R1: 81.10
S2: 78.95	R2: 81.85
S3: 78.20	R3: 82.50