Oil starts trading on a bullish price gap 5/6/2023

US crude oil futures prices achieved noticeable gains within the bullish track, as we expected, in which we relied on breaching 71.55, surpassing the required target of 73.10, and recording a high of 74.92.

Technically, oil prices opened their first weekly trading on an ascending price gap to record the highest at $74.92. However, a closer look at the 4-hour chart shows that the price continued to receive a positive incentive from the simple moving averages, stimulated by the clear positive momentum on the 14-day momentum indicator on the short-term frames.

Despite the technical factors that support the possibility of a rise, there is an opportunity to cover the price gap, and with the high level of risk compared to the expected return, we prefer to monitor the price behavior until we get a clearer picture, noting that the return of trading stability below 71.55 targets 70.70 & 69.20, while Stability above it enhances the chances of elevation to visit 73.85.

Note: The risk level is high, and all scenarios will likely occur.

Note: Today we are awaiting high-impact economic data issued by the US economy, “Service PMI” and “European Central Governor Lagarde’s speech,” and we may witness high price fluctuations at the time of the news release.

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: 71.70	R1: 74.30
S2: 70.70	R2: 95.90
S3: 69.10	R3: 96.75