Oil suffers huge losses 5/10/2023

US crude oil futures prices continue to incur losses amid strong selling, as we expected, exceeding the bearish targets required to be achieved during the previous technical report at 86.60, recording its lowest level at $84.20 per barrel.

Technically, by looking at the 4-hour time frame chart, we find the simple moving averages continuing to put negative pressure on the price from above, accompanied by clear negative signals on the relative strength index, stable below the 50 midline.

From here, trading steadily below the previously broken support converted to the 85.50 resistance level represented by the .50% Fibonacci retracement, targeting 82.75 as the first target, and the losses may extend later towards 82.00.

Note: We notice positive crossover signals starting to appear on the Stochastic indicator, which may push the price to rise to retest 85.50 temporarily.

Note: Risk level may be high.

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: 82.75	R1: 88.10
S2: 80.80	R2: 91.50
S3: 77.40	R3: 93.40