USOil technical analysis Today. Oil prices declined during the beginning of the week’s sessions, affected by weak Chinese demand and pressure from a strong dollar, in addition to markets awaiting US inventory reports. After failing to break above the $78.35 level, the price resumed its decline and is currently holding above important psychological and technical support at $77.00, awaiting a clear catalyst during the New York session.
USOil Technical Analysis Today: General Technical Outlook
Crude oil is currently trading near $77.30 per barrel, after a limited rebound from the day’s lows of $76.85. The price is moving within a short-term descending channel, with trading remaining below the major moving averages, reflecting a clear dominance of sellers in the immediate picture.
Technical Indicator Analysis:
MACD: Remains in negative territory with a sideways momentum bias, reflecting a state of anticipation before making a decision.
Stochastic: A slight rebound from oversold areas, but without confirmation of a real bullish reversal.
Moving Averages: The price is below the 50- and 100-day moving averages, which maintains selling pressure in the short term.
USOIL Expected Scenarios
Bullish Scenario:
If the price breaks the 77.85 level and holds above it, we may witness a rebound towards 78.35 and then 79.00, especially if US inventory data comes in weak.
Bearish Scenario:
If the price fails to hold above 77.00, the decline may extend to 76.40, then 75.70, a potential strong support area in the short term.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 62.67 | 61.97 |
| Target Point 1 (TP1) | First resistance: 63.82 | First support: 60.70 |
| Target Point 2 (TP2) | Second resistance: 60.80 | Second support: 59.20 |
| Stop Loss (SL) | 61.97 | 62.67 |
Oil is currently trading at an important testing point. A break of 77.00 would push the price into a new downward trend, while a break of 77.85 could restore market balance in the short term. Traders are advised to closely monitor market volatility during the New York session, especially as official US inventory data approaches.
Impactful Economic News:
- US Energy Information Administration (EIA) report – due this week and could cause sharp movements if it shows an unexpected increase in inventory.
- US Economic Data (PPI) today – Any sharp movement in the dollar could impact global oil pricing.
