Oil requires careful consideration 21/3/2023

Mixed trading dominated the prices of US crude oil futures contracts at the beginning of this week’s trading, recording a low of $64.40 per barrel.

Oil prices are trying to provide some recovery, benefiting from the intraday stability above 65.60. However, upon closer look at the chart, we find that the simple moving averages are still an obstacle and pressure on the price from above, accompanied by the clear negative signs on the stochastic, which started to lose bullish momentum.

We tend to be negative, but with caution, knowing that a decline below 65.60 facilitates the task required to visit 65.10, and breaking it increases and accelerates the strength of the bearish trend so that the door is open towards the official targets at 63.00 and 62.50, as long as trading remains stable below 68.50.

The breach to the upside and the price consolidating above 68.50 forces oil prices to enter a bullish correction; its initial target is 69.90, extending later to visit 70.60.

Note: The risk level is high and we may witness random, irregular movements.

Note: Today we are awaiting the speech of the “European Central Bank Governor”, and we may witness high price fluctuations.

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: 65.10	R1: 68.50
S2: 63.00	R2: 69.90
S3: 61.65	R3: 71.90