Oil Touches The Downside Correction Targets

US crude oil futures prices incurred heavy losses yesterday, within the bearish correction, touching the official target for the downside correction 79.75, recording the lowest price of 79.70.

Technically, and with the price stability below the resistance level of the psychological barrier 81.00, this increases the possibility of continuing the decline today. Looking at the 4-hour chart, we notice the continuation of the negative pressure of the 50-day moving average, accompanied by the RSI gaining bearish momentum.

Therefore, we will maintain our negative expectation, knowing that trading below 79.70 facilitates the task required to visit 78.80, the next target, and after that 77.70 an official station.

In general, we suggest the continuation of the bearish corrective trend as long as the daily trading is stable below 82.00.

Note: The risk level is high.

S1: 78.80	R1: 82.00
S2: 77.65	R2: 84.10
S3: 75.55	R3: 85.30