Oil: Stay on The Fence Until Pending Orders 25/1/2022

Mixed trading dominated the movements of US crude oil futures at the beginning of this week, after the price declined below the 84.80 support level, which forced oil to enter a bearish correction targeting 81.80.

Technically, we notice the negative pressure coming from the simple moving averages that support the continuation of the decline that occurred during the previous session, which contradicts the positive signals from the RSI.

Although we tend to the negativity, also relying on the price stability below the broken support-into-resistance level at 84.80, we prefer staying aside for the moment waiting for the following pending orders:

The return of the intraday stability below 82.60 facilitates the task required to visit 81.70. The price behavior should be monitored around this level because breaking it forces oil to continue the bearish correction to target 79.80 initially.

Rising above the broken support level 84.80/84.70 may lead oil to form a temporary bullish attack to visit 85.75.

S1: 81.70	R1: 85.75
S2: 79.80	R2: 87.80
S3: 77.70	R3: 89.75