Oil touches corrective targets 3/10/2023

Negative trading dominated the prices of US crude oil futures within the expected downward correction during the previous technical report, exceeding the required targets to reach the official target of 88.70, recording its lowest level of $87.80 per barrel.

Technically, oil failed to maintain trading above 89.40. This previously broken support became a resistance level represented by the 23.60% Fibonacci retracement, as shown on the 4-hour chart, and we find the simple moving averages continuing to support the daily bearish price curve.

From here, with the stability of trading below 89.40, the bearish scenario remains the most likely during today’s trading session, targeting 86.70 as the first target, and breaking it increases and accelerates the strength of the bearish trend, so we are waiting for 85.25.

Trading stability above 89.40 will immediately stop the proposed bearish scenario and lead oil prices to retest 90.40 and 90.70, respectively.

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: 86.70	R1: 90.70
S2: 85.25	R2: 93.25
S3: 82.70	R3: 94.70