Technical Analysis: USOIL

USOIL hit a two-month high

On Monday, USOIL climbed for the third straight trading day. It reached US$65.52 per barrel for some time, which marked the highest level since 4^th April.

OPEC’s oil production increase was lower than planned

As Iraq further cut oil production to offset previous overproduction, and oil production increase failed to meet quotas in Saudi Arabia and United Arab Emirates, OPEC’s oil production increase was lower than planned in May, according to the survey from Reuters. OPEC’s oil production reached 26,750 thousand barrels per day in May, an increase of 150 thousand barrels per day from April, but it was lower than the planned production of 411 thousand barrels per day.

The USDX fell

On Monday, the USDX was prone to fluctuation and declined. It broke below the 99 mark for some time. It ended down 0.21% at 99.01.

The bullish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USOIL climbed steadily. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing that USOIL will rise further. Investors should focus on whether USOIL will break through the resistance at 67.0. It will rise further with potential resistance at 69.0 if it breaks above 67.0.

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation and climbed. The bullish market trend prevailed. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that the market trend is bullish. Investors should focus on whether USOIL will break through the support at 64.9. It will climb further if it retreats but is stable above 64.9.

Key resistance: 67.0,69.0

Key support: 64.9,63.0

Generally speaking, the market trend is bullish in the short term. Investors should focus on EIA’s monthly report on the short-term energy outlook during the day.