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US crude oil futures prices incurred heavy losses, as we expected within the bearish corrective context referred to during all reports of this week, heading to touch the first required target of 78.70, recording its lowest level at 78.25.
Technically, oil prices are witnessing stability below the psychological barrier of 80.00, in addition to stabilizing trading below the previously broken support level that turned into the 80.60 resistance level. However, by looking at the chart over time, we notice the negative pressure coming from the simple moving averages, accompanied by the stochastic losing the bullish momentum gradually.
Therefore, the bearish corrective scenario will remain valid and effective, targeting 78.25, knowing that breaking it will force oil prices to continue the current descending wave, with a next target located around 77.40. It may extend later towards 75.25.
The break-up and the rise again above 81.40 delays the chances of a decline but do not cancel them, and we may witness a retest of 82.60 before retracing.
Note: the level of risk is high.
| S1: 77.40 | R1: 82.60 |
| S2: 75.25 | R2: 85.60 |
| S3: 72.30 | R3: 87.70 |
