Oil: Selling pressure continues 12/10/2023

US crude oil futures prices declined to be able to cover the rising price gap, as we expected, touching the official targets required to be achieved at 83.75, recording its lowest level at $82.82 per barrel.

Technically, with a closer look at the 240-minute time frame chart, we notice continued negative pressure on the simple moving averages that continue to pressure the price from above. The 50-day average meets near the 85.40 resistance level and adds more strength to it, and this comes in conjunction with the clear negative signals.

We maintain our negative expectation, targeting 81.75, an awaited official station, and the price must be carefully monitored around this level, because breaking it increases and accelerates the strength of the daily downward trend, making the way directly open to visit 80.45. At the same time, the consolidation above may push oil prices to attempt an upward rebound.

Moving upwards and consolidating the price above 85.45 can thwart the idea of falling, and oil will recover directly to visit 87.70.

Note: Today we are awaiting highly influential economic data issued by the American economy, the “Consumer Price Index,” and we may witness high volatility when the news is released.

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: 81.75	R1: 85.45
S2: 80.45	R2: 87.80
S3: 78.10	R3: 89.10