Support
Oil prices stabilizes in the first quarter of this year
Oil prices fluctuate in narrow range amidst bearish outlook
Oil prices have been fluctuating between 72.50 and 82.50 since 2023
The outlook is bearish, and prices may fall further to 69.00 - 65.00 if the support level of 72.50 is breached
If prices surpass the resistance level at 82.50, they could reach $88.00
Starting from 2023, oil prices have been fluctuating within a range between the upper border of the cross channel at 82.50 and the lower border of the channel at 72.50. This fluctuation followed a significant drop in oil prices since its peak of $120.00 in mid-June of the previous year.
Frequent movements remain between 82.50 - 72.50.
The overall outlook for oil suggests a bearish trend, which is contributing to its decline and the breach of the lower border of the cross channel. Despite the news regarding the Federal Reserve and the ongoing conflict between Russia and Ukraine over the past three months, oil prices have remained largely unaffected.
The Daily Chart
Oil prices are currently trading within a sideways channel on the daily frame. After testing the upper border of the channel at around 82.50, oil prices retreated to $77.00. There is a possibility that prices may drop further to test the lower border of the channel at the support level of 72.50. In the event that this level is breached, oil prices could continue to fall to the range of 69.00 - 65.00 dollars.
On the other hand, if oil prices manage to surpass the resistance level at 82.50, this could lead to an extension of the upward trend, possibly up to $88.00.
