USOil Technical Analysis: Oil is trading in a downtrend today, recording a high of $68.93 so far and a low of $68.01, and is currently trading at $68.60. Prices indicate trading below most of the moving averages, which supports the downtrend at the moment. The MACD indicator is also showing negative signals, reflecting the continued weakness of the upward momentum and the possibility of further price declines in the short term.
USOIL Technical Analysis: Technical Analysis
- Moving Averages:
Oil is currently trading below most of the major moving averages, indicating that the downtrend is still in place. Prices that remain below these averages reflect weakness in the upward momentum, and increase the possibility of continued decline or volatility in the short term.
In the event of any attempt to rise, it will be necessary for oil to exceed these averages to confirm the beginning of a new upward trend. However, if oil continues to trade below these averages, the downtrend will be more likely.
- MACD Indicator:
The MACD indicator is showing negative signals, as the MACD line is trading below the signal line, which reflects the continuation of selling pressure and reinforces the current downtrend.
The increasing distance between the two lines indicates an acceleration of the negative trend, which increases the possibility of continued price decline in the short term.
Trading Expectations:
- Given the current conditions, oil is expected to continue trading within the downtrend as long as prices remain below the $69.00 level. If the pair continues to decline below the $68.00 level, we may witness further decline towards the next support levels at $67.50 or lower.
- However, if oil is able to penetrate the $69.00 level and rise above it, this may indicate the beginning of a correction phase or a shift in the trend towards the upside.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 69.22 | 68.11 |
| Target Point 1 (TP1) | First resistance: 69.63 | First support: 67.54 |
| Target Point 2 (TP2) | Second resistance: 69.95 | Second support: 67.00 |
| Stop Loss (SL) | 68.11 | 69.22 |
Oil is in a clear downtrend, supported by trading below the moving averages and negative signals from the MACD indicator. If the negative trend continues, we are likely to see further declines towards lower support levels. However, in case of an upward breakout of important levels, the trend may change and oil may resume rising.
