Oil resumes the bearish correction 16/8/2023

US crude oil futures prices incurred significant losses during the previous trading session; within the bearish corrective context, we relied on breaking 81.70, touching the required target of 80.70, and recording its lowest level at $80.44 per barrel.

Technically, looking closely at the 4-hour chart, we find the price stable below 81.70, achieving a clear breach of the mentioned level, which turned into a strong resistance level. At the same time, the RSI continues to provide signs of a decline in momentum on the short timeframes.

Therefore, we tend to be negative, but with caution, knowing that the decline below 80.40 facilitates completing the bearish correction, targeting 79.85 as the first target, and the losses may extend later towards 78.95.

If the price succeeds in consolidating above 81.80/81.70, we may witness a temporary recovery that leads oil prices to retest 82.30 and 82.80, respectively. Generally, we suggest a bearish trend as long as trading remains stable below 83.50.

Note: We are awaiting the report issued by the International Energy Agency regarding oil stocks, and we may witness high price fluctuations at the time of the news release.

Note: Today we are awaiting high-impact economic data issued by the US economy, “the results of the Federal Reserve Committee meeting,” and we may witness high price volatility.

Note: the risk level may be 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: 79.85	R1: 82.30
S2: 78.95	R2: 83.50
S3: 77.45	R3: 84.70