Oil Sustains Losses in Ongoing Downtrend 9/11/2023

The downtrend continues to dominate the movements of US crude oil futures contracts, marking the third consecutive session of losses. It reached the first official target mentioned in the previous report at $75.45, hitting a low of $74.96 per barrel.

Analyzing the 240-minute time frame chart, we observe a persistent negative crossover of the simple moving averages, with oil prices remaining below the psychological resistance level of $77.00.

As a result, the bearish scenario remains the most favored, aiming for $74.45 as the initial target. A breach of this level would further extend oil’s losses, with the next significant support at $73.80.

On the upside, a breakthrough and consolidation above $77.00 could delay the possibility of a decline, though it does not negate it entirely. In this case, we might witness a retest of $78.50 before determining the next price direction.

Please note the elevated risks associated with today’s market conditions, particularly in light of anticipated high-impact press talks featuring “Federal Reserve Governor Jerome Powell” and “European Central Bank Governor Christina Lagarde.” Heightened geopolitical tensions could lead 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: 74.45	R1: 77.00
S2: 73.40	R2: 78.50
S3: 71.90	R3: 79.50