Oil: Negative pressure remains 26/10/2022

Divergent movements still dominate the prices of US crude oil futures contracts amid conflicting data about the energy markets, reaching its highest level during the previous session’s trading of $86.00 per barrel.

Technically, the 50-day simple moving average is still an obstacle in front of the price, and the bearish bias motivates the clear negative signs on stochastic on the 4-hour time frame.

With the price maintaining the negative stability below the resistance level of 86.60, we tend to the negativity, knowing that the pressure on the support level of 84.40 facilitates the task required to visit 83.35 and 82.0, respectively.

Surpassing the upside and rising again above 86.30, and most importantly 86.60, can thwart the proposed bearish scenario, leading oil to recover with a target of 87.60.

Note: We are awaiting the report issued by the International Energy Agency on oil inventories and may witness high price volatility.

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: 83.35	R1: 86.25
S2: 81.75	R2: 87.60
S3: 80.40	R3: 89.20