USOIL to drop toward $76 per barrel?

15 Ağu 2023

After reaching nearly $85 per barrel three days ago, USOIL drifted lower with the global stock market. In the process, it retraced to its 20-day SMA, which acts as a significant support level. Furthermore, RSI, MACD, and Stochastic started to reverse and point to the downside on the daily chart. This bearish development could coincide with a short-term trend reversal and foreshadow USOIL’s return to the area between $75 and $76 per barrel. We want to see a bearish crossover between DM+ and DM- (on the daily time frame) to further bolster the bearish case. In addition to that, we would like to see the previously mentioned indicators continue to develop bearish structures.

Illustration 1.01

Illustration 1.01 displays the daily graph of USOIL and two simple moving averages. The yellow arrow indicates a price retracement toward the 20-day SMA, which currently acts as a support level. If the support fails to stop selling pressure, it will raise the bearish odds.

Technical analysis
Daily time frame = Bearish
Weekly time frame = Neutral

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

24 Ağu 2023

Not

We continue to maintain the price target of $76 per barrel.

29 Ağu 2023

İşlem kapandı: durdurma seviyesi

We abandon the price target as the price fails to follow through with action.