USOIL Technical Analysis: West Texas Intermediate (WTI) crude oil fell sharply during this week’s sessions, affected by higher-than-expected US oil inventory data, along with indicators of slowing global demand following the International Monetary Fund’s warnings of a slowdown in Chinese economic growth.
Oil opened today at $60.37 a barrel and is currently trading at $59.73, after recording a session high of $60.61 and a session low of $59.44. Negative momentum remains, but some technical signals are beginning to show a slight improvement.
USOIL Technical Analysis: Technical Analysis for OIL – H4
General trend: Bearish in the medium term, with a potential for a temporary upward correction.
The chart shows that the price fell sharply from the 71.00 level towards the 57.50 low before beginning an upward correction attempt.
- MACD indicator: The MACD indicator has begun a positive crossover, with the bars emerging from negative territory for the first time since early April, indicating the beginning of a buying momentum.
- Stochastic Oscillator: The price is in the overbought zone at the 81 level, indicating the possibility of a slight downward correction in the near term.
- Moving Averages: The price remains below the major moving averages (EMA 50 and 100), limiting any gains without breaking these areas.
Trading Outlook
- Positive Scenario: If the price succeeds in consolidating above 61.22, we may witness an attempt to rise towards 62.27 and possibly a retest of the long-term moving averages.
- Negative Scenario: The price fails to exceed 61.22, with continued selling pressure, which may return it to test the 58.83 and 57.50 areas.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 61.22 | 58.83 |
| Target Point 1 (TP1) | First resistance: 62.27 | First support: 57.50 |
| Target Point 2 (TP2) | Second resistance: 62.80 | Second support: 57.00 |
| Stop Loss (SL) | 58.83 | 61.22 |
Despite recent corrective attempts, the overall trend for oil prices remains negative.
especially in light of economic pressures and weak demand data. However, current technical movements may provide short-term trading opportunities within a defined range. It is advisable to wait for a clear breakout signal of one of the pivotal levels before entering into strong trades.
