Oil stable below resistance 16/11/2022

Mixed trading dominated the prices of US crude oil futures contracts during the previous trading session, recording its highest level of $88.65 per barrel.

Technically, the 4-hour chart shows that oil failed to cross upwards and rise above the ascending channel line. The bearish slope stimulates the negative pressure from the simple moving averages, which constitute an obstacle in front of the price.

From here, and with daily trading remaining below 86.60, the bearish bias is the most likely today, targeting 84.00, considering that breaking it increases and accelerates the strength of the bearish bias, opening the door towards 82.00 & 81.75.

Consolidation above 86.60 invalidates the activation of the suggested bearish scenario and leads oil prices to recover towards 88.60.

Note: the level of risk is high.

Note: We are awaiting the report issued by the International Energy Agency regarding oil inventories, and we may witness high price volatility.

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: 84.00	R1: 88.60
S2: 81.75	R2: 90.90
S3: 79.40	R3: 93.15