Oil suffers huge losses 25/10/2023

As we expected during the previous technical report, US crude oil futures prices incurred significant losses within a negative outlook, touching the aforementioned downward correction targets at 83.70, recording its lowest level at $83.00 per barrel.

Technically, the negative intersection of the simple moving averages, which continues to exert negative pressure on the price from above, supports the possibility of continuing the decline and confirming a break of 85.10.

From here, with the stability of trading below the psychological resistance level of 85.00, and in general below the pivotal resistance of 85.65, the downward trend will be the most preferred during today’s session’s trading, targeting 82.40 as the first target, and breaking it increases and accelerates the strength of the downward trend, so that we are waiting for 81.10, the next official station.

Crossing upwards and consolidating the price above 85.65 will immediately stop the proposed bearish scenario, oil will recover, and we will witness positive trading targeting 87.55 and 88.90.

The risks are high.

Note: Today, the markets are awaiting high-impact data issued by the Canadian economy, represented by the Bank of Canada’s monetary policy report, interest statement, and interest rate decision, in addition to the speeches of the chairman of the Federal Reserve and the European Central Bank. We may witness fluctuation in the markets during the release of these data.

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: 82.40	R1: 85.65
S2: 81.10	R2: 87.55
S3: 79.15	R3: 88.90