Oil touches downward targets 27/3/2023

The prices of US crude oil futures contracts declined significantly by the end of last week’s trading within the bearish directional movement, as we expected, touching the official target station at the price of 67.20, recording its lowest level at $66.86 per barrel.

Technically, the bearish trend during today’s session is the most likely, based on the confirmation of the price breaking the support floor of 70.30, in addition to the negative pressure of the simple moving averages, which support the occurrence of more declines, stimulated by the opposing signs coming from the RSI and its stability above the mid-line50.

Therefore, with intraday trading remaining below 70.30, we target 67.30 as a first target, considering that breaking it extends oil losses so we will be waiting for 65.40 as the next stop.

You should be aware that stochastic is trying to get positive signs, and we may witness some fluctuation until we get the official trend. We remind you that the price’s consolidation above 70.30, and most importantly 70.70, can thwart the bearish trend, and oil will recover with the first target of 72.30.

Note: The risk level is 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: 67.30	R1: 70.70
S2: 65.35	R2: 72.30
S3: 63.80	R3: 74.20