Oil touches the bearish targets, eyes on stocks 8/9/2022

As we expected, American crude oil prices incurred heavy losses during the previous trading session, heading to touch the awaited descending official target at 83.00, to record its lowest level at 81.51.

Technically, with the negative pressure of the simple moving averages that support the bearish price curve and confirming the breach of 83.50, the previously broken support is now turned into a resistance level.

Therefore, the bearish trend is still valid and effective, knowing that the return of the intraday stability below 81.50 increases and accelerates the strength of the bearish trend so that we are waiting for 80.40 next official station as long as the price is stable below 83.50.

We remind you that consolidation above 83.50 invalidates the activation of the proposed scenario and leads oil prices to a temporary recovery, to retest 86.60.

Note: the risks are high.

Note: The ECB rate decision, press conference, MPC statement, and Fed Chairman’s speech are due today; all could lead to price volatility.

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: 80.40	R1: 86.60
S2: 77.80	R2: 90.20
S3: 74.10	R3: 92.80