Oil touches targets, negative pressure remains 7/12/2022

The prices of US crude oil futures contracts incurred significant losses during the previous trading session, within the downward track, as we expected in the last report, touching the required target at 75.20, recording its lowest level at $73.44 per barrel.

Technically, looking at the 240-minute chart, with regular movement inside the bearish channel, in addition to the continuation of the negative pressure from the simple moving averages.

Therefore, the continuation of the bearish trend is the most likely today, noting that the decline below 733.50 extends the pair’s losses, opening the door to 72.50, the first target, then 71.00, the next station, and then 70.50, unless we witness any trading again above 77.00.

Rising again above 77.00 can thwart the suggested scenario and lead oil prices to compensate for part of the losses towards 79.00.

Note: International Energy Agency report regarding oil inventories is due today, and we may witness high price volatility.

Note: The level of risk 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: 72.50	R1: 77.00
S2: 70.80	R2: 79.60
S3: 68.10	R3: 81.35