USOIL Technical Analysis: The global oil market closed last week with USOil at $62.50 per barrel. Based on technical analysis, the market is currently in a downward trend. Prices are trading below key moving average crossovers, and the MACD indicator is showing negative signals, suggesting further downward pressure on the price.
Given these indicators, there is a potential opportunity for selling in the early sessions of this week, particularly during the Asian session. A drop to the $61.38 level appears to be a plausible entry point for a short position. From this level, the next target for profit-taking would be around $59.78 per barrel, which aligns with the current technical setup and price action.
To manage risk effectively, it is recommended to place a stop-loss order at $64.31 per barrel. This stop-loss level provides a safety margin to protect against significant price reversals and ensures that losses are minimized if the market moves against the anticipated downward trend.
This strategy is based on the current trend and technical indicators, which show a bearish outlook for the short term. However, traders should continue to monitor market conditions.
as any shifts in key technical signals or external factors could impact the outlook and require adjustments to the strategy.
In summary, with USOil trading below key moving averages and negative MACD signals, selling is a viable option. A target of $59.78 per barrel is suggested, with a stop-loss at $64.31 per barrel to manage potential risk.
USOIL Technical Analysis: On the other hand,
if the buy zone at 64.31 per barrel is broken, an additional support level at $65.47 per barrel could be targeted.
USOIL Technical Analysis: Resistance and Support Levels
- Second Resistance: 63.29
- First Resistance: 63.00
- Pivot Level: 62.63
- First Support: 62.34
- Second Support: 61.97
