USOIL Technical Analysis: Outlook for the Week
Crude oil prices concluded last week on a bearish note, with USOIL closing at $61.03 per barrel in the global markets. Technical indicators continue to point toward a prevailing downtrend, suggesting potential weakness in the coming sessions. The current price action remains firmly below key moving average crossovers, which reinforces the downward momentum and signals that the bears are still in control.
Additionally, the MACD (Moving Average Convergence Divergence) indicator is flashing negative signals, further supporting a bearish outlook. The histogram remains below the zero line, and the MACD line continues to diverge downward from the signal line, indicating sustained selling pressure and a possible continuation of the current trend.
Given this technical setup, a selling strategy may be appropriate during the early Asian trading sessions this week. A potential entry point for short positions could be around the $60.18 level, where a retracement is likely to occur. If bearish momentum continues as anticipated, the next target for profit-taking would be at $59.08 per barrel, aligning with recent support zones and previous price reactions.
To effectively manage risk, traders are advised to place a stop-loss at the $62.37 level. This stop level sits above key resistance and recent swing highs, offering a reasonable cushion against unexpected market reversals.
In summary, technical analysis supports a bearish scenario for USOil in the short term. With prices trading below moving averages and the MACD showing continued negative momentum, selling opportunities are likely, especially in the early part of the week. However, as always, risk management through appropriate stop-loss placement remains essential in volatile commodities trading.
USOIL Technical Analysis: On the other hand,
If the buy zone at 62.37 per barrel is broken, an additional support level at $63.21 per barrel could be targeted.
USOIL Technical Analysis: Resistance and Support Levels
- Second Resistance: 61.39
- First Resistance: 61.25
- Pivot Level: 61.13
- First Support: 60.90
- Second Support: 60.83
