Oil: negativity in place 24/8/2023

The prices of US crude oil futures contracts declined significantly during the previous trading session, touching the bearish target required to be achieved yesterday at 78.60, recording its lowest level at $77.68 per barrel.

Technically, looking at the 4-hour chart, the simple moving averages continue to exert negative pressure on the price from above. Prices are still stable below the previously broken support level, which was transformed into the resistance level of 80.60, Fibonacci correction of 23.60%, and the clear negative signs on the stochastic.

Therefore, we hold onto our negative expectations, targeting 77.60 as a first target, knowing that breaking the level above enhances the chances of continuing the decline to visit 76.50 as the next target, unless we witness the price’s intraday stability above 79.70.

Only from the top, it crossed upwards, and the price’s consolidation above 79.70 postpones chances of a decline, but does not cancel it. We may witness a temporary bullish tendency, aiming to retest 80.60 before starting the decline again.

Note: Today we are awaiting economic data from the summit of the “BRICS”, and “Jackson Hole Economic Forum”, and we 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: 77.55	R1: 79.70
S2: 76.50	R2: 80.85
S3: 75.35	R3: 81.90