Oil Prices Suffer Ongoing Losses 6/11/2023

US crude oil futures experienced a setback as they encountered a crucial resistance level mentioned in the previous technical report at $83.55. This led to substantial losses, aligning with the anticipated negative outlook and touching the predefined target of $80.30, marking its lowest point at $80.15 per barrel.

Upon analyzing the 4-hour time frame chart, it is evident that the 50-day simple moving average continues to pose a hurdle for the price. Additionally, the market witnessed a clear breach of the support-turned-resistance level at $82.00, indicating a shift in market dynamics.

In light of these developments, the bearish scenario remains the most viable option. A break below $80.00 would reinforce and intensify the downward trend, setting the stage for a target of $79.45, with potential further losses extending to $78.10.

Conversely, a breakout and consolidation above $82.00 could disrupt the envisioned scenario, leading to a potential recovery in oil prices. In such a case, the market might retest resistance levels at $82.85 and $83.50 initially.

It is crucial to note that risks are elevated, especially given the ongoing geopolitical tensions, which might lead to heightened price volatility.

Please exercise caution and remain mindful of the prevailing risks.

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: 79.45	R1: 82.85
S2: 78.10	R2: 84.90
S3: 86.05	R3: 86.30