USOIL Technical Analysis: Oil continues its downtrend during today’s trading, recording its highest price so far at 73.28 and its lowest price at 71.69, while it is currently trading at 73.03.
USOIL Technical Analysis: Technical Analysis
Oil is trading below the moving averages indicators on different time periods, which reinforces the downtrend hypothesis. Trading prices below the moving averages indicates that selling momentum is currently dominating the market.
In addition, the MACD indicator is showing negative signals, trading in the negative zone with the MACD lines crossing in a downward direction. This signal supports the idea that the general trend of oil prices is tending to decline in the short term.
Trading Expectations:
In light of these data, oil is expected to continue its downward trend, with the possibility of testing the nearby support levels at 71.50. If these levels are broken, the decline may extend towards 70.00. On the other hand, in case of an upward bounce, oil is likely to face strong resistance at 73.50, and if it manages to break this resistance, it may target higher levels at 74.50.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 73.92 | 72.43 |
| Target Point 1 (TP1) | First resistance: 74.56 | First support: 71.54 |
| Target Point 2 (TP2) | Second resistance: 74.90 | Second support: 71.00 |
| Stop Loss (SL) | 72.43 | 73.92 |
The overall trend of oil remains bearish, supported by negative signals from the moving averages and the MACD. The downtrend is expected to continue in the short term, with support and resistance levels to be monitored to determine entry or exit opportunities.
