Oil suffers huge losses 23/11/2023

US crude oil futures experienced a substantial decline in the previous trading session, aligning with the anticipated downward trajectory outlined in the preceding technical report. The price surpassed the specified targets, reaching as low as $73.85 per barrel.

Examining the 240-minute time frame chart reveals efforts by oil to mitigate losses through positive movements. However, caution is warranted as the Stochastic indicator resides in overbought areas, coupled with persistent downward pressure from the 50-day simple moving average.

Our inclination leans toward negativity, with a watchful eye on maintaining trades below 77.50. The initial target is set at 74.10, recognizing that breaching this level intensifies and accelerates the downward trend, potentially paving the way directly to 72.00.

It’s crucial to note that the cessation of the downward trend hinges on closing the hourly candle above 77.50, potentially leading oil prices to revisit 78.10. Close monitoring of price behavior around 78.10 is paramount due to its significance in shaping the short-term trend. A breach at this level opens avenues for gains, commencing at 80.00.

Notes:

1. The risk level remains elevated.
2. Today’s anticipation of impactful economic data from the Eurozone (preliminary readings of the services and manufacturing PMI index from France and Germany) and the United Kingdom (preliminary reading of the services and manufacturing PMI index) may induce substantial price fluctuations.
3. Heightened risk amid ongoing geopolitical tensions may contribute to increased 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: 74.05	R1: 78.10
S2: 71.90	R2: 80.05
S3: 70.00	R3: 82.20