Oil retests support 21/12/2023

Positive trading prevailed in the US crude oil futures market until midday, reaching the designated target of 75.40 and peaking at 75.35.

Technically, examining the 4-hour chart reveals that the 75.40 level is exerting substantial downward pressure on oil, prompting a swift retreat towards 73.54. The negative stochastic indicator is losing upward momentum, complemented by evident negative signals on the Relative Strength Index over shorter time intervals.

In the upcoming hours, a temporary negative outlook is favored, particularly if trading remains below 74.90, with the initial target set at 73.10, followed by 71.80, aligning with the 50-day simple moving average.

It is crucial to note that a resurgence above 74.90, coupled with price consolidation, may thwart the retest scenario, signaling a potential return to the official upward trend. Targets in this scenario start at 76.00, potentially extending towards 76.70.

Cautionary Note: Today, heightened attention is warranted as we anticipate the release of impactful economic data from the American economy—the “final reading of gross domestic product” for the quarter. Consequently, expect increased price fluctuation during the news release.

Risk Advisory: The current risk level is elevated.

Geopolitical Warning: Persistent geopolitical tensions contribute to a heightened risk environment, potentially resulting in increased price volatility. Exercise caution.

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: 73.10	R1: 74.90
S2: 72.45	R2: 76.05
S3: 71.30	R3: 76.70