USOil Technical Analysis: Today, oil is trading in a weak bullish trend, as it recorded its highest price so far at 69.60 and its lowest price at 68.75, while it is currently trading at 69.34. Although the market is showing some bullish momentum, technical analysis indicates that this trend is weak in light of prices trading below the moving average indicators, which reduces the possibility of its strong continuation.
USOIL Technical Analysis: Trading Price Analysis
By observing the price movement, we notice that oil is trading below the main moving average levels, which reflects that the bullish trend does not have strong support at the present time. In this case, the chances of continuing the rise are greatly reduced unless the market is able to exceed these levels. This means that oil prices may face difficulty in maintaining the bullish momentum if trading continues below these averages.
Technical Analysis Using Moving Averages:
Trading oil below moving averages, such as the 50 and 200-day moving averages, indicates that the overall trend is still bearish or at least weak. If trading continues below these averages, this is likely to increase the selling pressure on oil, reducing the chances of the uptrend continuing in the short term.
MACD Analysis:
MACD is showing positive signals, but it indicates weak bullish momentum. Although MACD has shown some positive improvements, the strength of this trend is very weak, which increases the possibility of oil falling or continuing to fluctuate in a narrow range. Therefore, one should be careful that these positive signals may not be enough to push prices significantly higher.
Trading Expectations:
Looking at the current technical analysis, oil is likely to remain in a narrow trading range within a weak bullish trend in the short term. Oil may face strong resistance near the 69.60 level, and if this resistance is broken, it may continue to rise towards higher levels. However, continuing to trade below the moving averages may significantly limit the chances of this uptrend.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 69.80 | 68.47 |
| Target Point 1 (TP1) | First resistance: 70.61 | First support: 67.90 |
| Target Point 2 (TP2) | Second resistance: 71.10 | Second support: 67.60 |
| Stop Loss (SL) | 68.47 | 69.80 |
Although oil is showing some bullish momentum, the weakness of this trend as shown by the analysis using moving averages and the MACD indicator reduces the chances of its strong continuation. Oil is likely to remain range-bound in the short-term, with the focus on monitoring the key resistance and support levels.
