Oil Resumes The Upside 28/1/2022

During the previous analysis, US crude oil futures prices reversed the expected bearish path. We relied on price stability below the psychological barrier level of 87.00, to return to the bullish bounce, recording the highest 88.53.

Technically, we find that the 14-day momentum indicator is still defending the bullish trend, accompanied by the positive barrier of the 450-day moving average, which converges around 86.00 and adds more strength to it. On the other hand, we notice the negative features appearing on stochastic due to overbought.

With the technical signals conflicting, we prefer to remain neutral until the daily trend becomes clearer more accurately, to be waiting for the activation of the following pending orders:

The resumption of the rise depends on the stability of trading above 86.00. In addition, we need to witness a clear and strong breach of the top of 88.55, which is a motivating factor that may contribute to consolidating the gains to visit 90.30 initially.

Below 86.00 puts the price under strong negative pressure, to be the awaited targets 85.20, and it will extend later to retest 83.70.

Note: The risk level is high.

Note: CFD trading involves risks; all scenarios may occur.

S1: 85.20	R1: 88.65
S2: 83.45	R2: 90.30
S3: 81.80	R3: 92.10