Oil touches downside targets and selling pressure remains 31/1/2023

US crude oil futures prices incurred significant losses within the expected negative outlook during the technical report issued yesterday, touching the official target station at 78.25, recording its lowest level during the early trading of the current session at 77.56.

Technically, we continue to suggest the bearish daily trend, relying on the confirmation of the breach of 78.30, in addition to the continuation of the negative pressure coming from the simple moving averages that support the bearish price curve, accompanied by the RSI’s defense of more losses.

Therefore, the bearish scenario will remain valid and effective, towards 77.0, and breaking it will increase and accelerate the strength of the bearish daily trend, so we will be waiting to touch 76.00, an awaiting station, unless we witness any trading again above 78.30.

Note: Today we are awaiting high-impact data from the US economy, “Consumer Confidence Index,” and we may witness high volatility at the time of the news 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: 76.60	R1: 79.50
S2: 75.65	R2: 81.40
S3: 73.70	R3: 82.40