USOil Technical Analysis: Oil continues its trading today in a weak upward trend, as it recorded a trading high of $71.47 per barrel, and a low of $69.45 per barrel, while it is currently trading near the $70.01 per barrel level.
USOIL Technical Analysis: Technical Analysis
We notice that oil is trading below the major moving averages, indicating that the upward trend is still weak at the moment. Despite this, trading prices near these averages enhances the possibility of further increases if oil is able to maintain the upward momentum, even if this momentum is weak.
MACD indicator shows a positive trend, with a bullish crossover appearing in the indicator, reflecting the beginning of upward pressure on the market. However, the declining strength in MACD indicator indicates that the upward momentum is starting to weaken. Although the market is still in an upward trend, there is a decline in the strength of the current increases.
Today’s Forecast:
Although the uptrend remains intact, weak momentum could limit gains. If trading continues above $70.00 per barrel, oil could target the first resistance level at $71.50 per barrel, and if broken, it could head towards $72.00 per barrel.
On the other hand, if oil fails to maintain the uptrend or if the price breaks below $69.50, we could see a downside correction towards the support levels at $68.00 per barrel.
Trading strategies based on Buy/Sell level
| USOIL | In case of buying | in case of selling |
| Entry point | 70.82 | 69.45 |
| Target Point 1 (TP1) | First resistance: 71.47 | First support: 68.65 |
| Target Point 2 (TP2) | Second resistance: 71.80 | Second support: 68.10 |
| Stop Loss (SL) | 69.45 | 70.82 |
Oil is trading in a weak uptrend, with prices trading below the moving averages, which supports the chances of further gains, but the upside momentum is weak as shown by the declining MACD. If the market continues to test resistance levels, there may be a chance for limited gains, but the weak strength in momentum makes the uptrend fragile for now. Monitoring important support and resistance levels will be crucial in determining the next direction.
