USOIL Technical Analysis: The current price of oil in the global market stands at $60.99 per barrel. Technical analysis suggests that the oil market is currently in a downward trend, as prices are trading below key moving average crossovers. This indicates a bearish outlook for the near term. Additionally, the MACD (Moving Average Convergence Divergence) indicator also confirms the negative momentum, further supporting the expectation of price declines.
Given the prevailing market conditions, a selling strategy is advisable, with the expectation that prices will continue to decrease. A reasonable target price for the downside is $59.59 per barrel, which offers a potential for a moderate decline. Should the price continue to drop, the next key support level and profit-taking point is identified at $57.94 per barrel, where traders may consider closing their positions for a profit.
To manage risk effectively, a stop-loss order should be set at $63.07 per barrel. This price level is crucial as it serves as a key resistance point, and if the price rises above this level, it could signal a reversal or shift in the market trend, invalidating the bearish outlook. By setting this stop-loss, traders can protect themselves from further losses in case the market moves unexpectedly in the opposite direction.
In conclusion, the technical indicators suggest that a short-selling strategy with a target of $59.59 and a profit-taking level at $57.94 could prove to be profitable in the current market environment. However, it’s crucial to monitor price action closely and adjust the stop-loss level to safeguard against any unforeseen market shifts.
USOIL Technical Analysis: On the other hand,
if the buy zone at $63.07 per barrel is broken, an additional support level at $64.27 per barrel could be targeted.
USOIL Technical Analysis: Resistance and Support Levels
- Second Resistance: 61.57
- First Resistance: 61.17
- Pivot Level: 60.85
- First Support: 60.45
- Second Support: 60.13
