USOIL Technical Analysis: Oil continues to trade in a downward trend during today’s session, as markets show clear selling pressures that affect prices. In this analysis, we will discuss price behavior and technical indicators to provide a comprehensive overview of the current trend of oil and future trading expectations.
USOIL Technical Analysis: Price Analysis
Oil recorded the highest trading price for the day at 71.91 and the lowest price at 70.98, while the current price is trading at 71.59. This indicates that oil is moving within a narrow downward range, as it faces resistance at 71.91 and support at 70.98, reflecting the ongoing selling pressure in the market.
Technical Analysis
Moving Averages: Prices are trading below the moving average indicators, which reinforces the downward trend. This is an indication that the market is facing strong selling pressure, as the moving averages act as resistance levels that confirm the continuation of the downward trend in the short term. This means that any upward attempts will face significant challenges from this resistance.
MACD Analysis: The MACD indicator is pointing in a negative direction, as the indicator remains below the zero line, reflecting the continuation of the bearish momentum. However, there are some signs of weakness in the downtrend, indicating that the downtrend may face some pause or temporary correction in the near future.
Trading Outlook:
Oil is expected to remain in a bearish trend as long as prices remain below the moving averages. If the selling pressure continues, oil may test the support level at 70.98, and if broken, it may head towards lower levels. However, if the market witnesses an upward rebound, the main resistance will be at 72.53.
and the pair may face difficulty in breaking it due to strong selling pressure.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 72.53 | 70.98 |
| Target Point 1 (TP1) | First resistance: 73.20 | First support: 70.00 |
| Target Point 2 (TP2) | Second resistance: 73.60 | Second support: 69.50 |
| Stop Loss (SL) | 70.98 | 72.53 |
Based on the current technical analysis, oil remains in a downtrend.
with negative signals from the MACD and prices trading below the moving averages. The support level at 70.98 should be followed with caution.
as a break of it could lead to the continuation of the downward movement, while any upward rebound could encounter strong resistance at 72.53 levels.
