Oil touches bearish targets and negativity remains 23/2/2023

US crude oil futures prices extended their losses as expected, surpassing the official target station at 75.00 to a low of $73.83 per barrel.

Technically, there is a clear breach of the support floor of the psychological barrier 75.00, accompanied by the continuation of the simple moving averages providing negative pressure on the price from above, in addition to signs of clear momentum confinement on the short time frames.

With daily trading remaining below 75.10/75.00, the bearish slope is more likely during today’s trading, targeting 73.20 as a first target, and oil losses may extend later to visit 72.20.

From above, the price’s attempts to consolidate above 75.10 may lead oil prices to a temporary bullish bias, aiming to retest the previously broken support, which was transformed to the resistance level of 75.90.

Note: Today we are awaiting the “International Energy Agency” report regarding oil stocks, and we may witness high volatility and random movements.

Note: Today, we are awaiting quarterly the preliminary reading of the gross domestic product in the US, and we may witness a high fluctuation in prices at the time of the release.

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: 73.20	R1: 75.90
S2: 72.20	R2: 77.55
S3: 70.60	R3: 79.60