Oil is currently trading at $69.96 per barrel, amid a significant rise that reflects improved energy demand and reduced concerns about a global economic slowdown. This rise is supported by a decline in US inventories and increased expectations of stability in OPEC+ production policies. Improved market sentiment also enhances investors’ appetite for buying.
Oil Technical Analysis: Analysis of Technical Indicators
- Moving Averages:
Oil is trading above major moving averages, such as the 50- and 200-day moving averages, reflecting strong buying momentum and the continuation of the upward trend. These averages provide strong dynamic support and indicate strengthening purchasing power.
- MACD Indicator:
The MACD indicator is showing positive signals, moving above the zero line with an increasing gap between the indicator line and the signal line, indicating the continuation of buying momentum and the strength of the upward trend.
Key Technical Levels
- Resistance Levels:
The $71.00 level represents the first resistance and the price may test this level soon.
If broken, the price may face another resistance at $73.50.
- Support Levels:
$68.50 is the initial support in case of any correction.
$66.80 is the major support that is in line with the 50-day moving average.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 70.78 | 69.28 |
| Target Point 1 (TP1) | First resistance: 72.15 | First support: 67.74 |
| Target Point 2 (TP2) | Second resistance: 74.00 | Second support: 65.74 |
| Stop Loss (SL) | 69.28 | 70.78 |
Oil is showing positive signs that the uptrend will continue, supported by stable trading above the moving averages and bullish MACD signals. With the continued buying momentum and improving economic outlook, oil is expected to continue to make additional gains in the near term, especially if key resistance levels are broken.
