Oil resumes the bearish correction 17/8/2023

Significant losses were incurred by the prices of US crude oil futures contracts as part of intensive selling operations during the previous trading session, touching the bearish correctional targets, as we expected at the price of 78.95, recording its lowest level at $79.00 per barrel.

Technically, looking closely at the 4-hour chart, we find the price stable below 80.70, achieving a strong breach of the mentioned level, which turned it into a strong resistance level, in addition to the continuation of the relative strength index, which continues to provide signs of declining momentum on the short time frames.

Therefore, the resumption of the corrective decline is still valid and effective. Notably, a drop below 79.00 facilitates the task required to visit 78.40, an initial station whose targets extend later towards 77.50 & 76.60.

Only from above, price stability will return above 80.60, and most importantly, 80.80 will immediately stop the suggested bearish scenario, and oil will recover temporarily, to retest 81.70 & 82.30.

Note: Today we are awaiting high-impact economic data issued by the US economy, “unemployment benefits” and 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: 78.40	R1: 80.80
S2: 77.50	R2: 82.30
S3: 76.60	R3: 83.20