Oil needs to monitor price behavior for the 2nd session 5/4/2023

Due to the high level of risks amid conflicting technical signals, we adhered to intraday neutrality during the previous technical report, explaining that confirming a breach of 81.00 may extend oil’s gains to 81.60, recording its highest level at 81.80.

Technically, the inconsistency in the technical signals is still present. The simple moving averages are still holding the price from below. On the other hand, we find signs of negativity started to appear on the stochastic indicator, which supports the possibility of the beginning of a bearish reversal, in addition to the price gap that has not been covered yet.

Therefore, we observe the price behaviour of oil from the top above 80.85, and holding on to it increases the possibility of visiting 81.80, while failure to consolidate above 79.20 puts the price under negative pressure, aiming to retest 78.20.

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: 81.80
S2: 77.70	R2: 83.10
S3: 76.40	R3: 84.50