Technical Analysis：USOIL

Positive factors boosted oil price to above 80

On Wednesday, oil price increased by more than 2% as US EIA inventories plummeted. The US dollar decreased, and people were optimistic about the recovery of oil demand, boosting oil price to above 80.

EIA Crude Oil Inventories Plummeted by around 13,000 Thousand Barrels

Based on the data announced by the EIA on Wednesday, crude oil inventories (during the week ending on 25^th November) decreased by 13000 thousand barrels, the highest since 2019. Oil refineries will continue raising oil production to increase the inventories as the winter is coming.

Powell said the Fed Governor may Raise the Interest Rate at a Slower Pace

On Wednesday, the Fed Governor Powell said the Fed may raise the interest rate at a slower pace as early as December. He warned that the battle against high inflation didn’t end. He said the final interest rate may be higher that the September forecast and is uncertain.

Technically speaking, USOIL rebounded steadily

On the chart of the day, USOIL increased steadily from a low level and broke above the descending trend line. The market trend is bullish in the short term. In terms of technical indicators, KDJ went upwards after death cross occurred, showing the market trend is bullish. Investors should focus on whether USOIL will break through the resistance at 84.0.

On the 4-hour chart, USOIL rose and was prone to fluctuation. Potential head shoulder and bottom pattern occurred. In terms of indicators, MACD went upwards after golden cross occurred, showing the market trend is bullish. Investors should focus on whether USOIL will break through the support at 79.0. It will rise further with potential resistance at 84.0 if it is steady above 79.0.

Key resistance: 82.6, 84.0

Key support: 79.0, 76.3

In summary, the news that the Fed will increase the interest rate at a slower pace as early as December boosted oil price. In addition, concerns on epidemic eased, and EIA crude oil inventories decreased. All of those raised oil price to above 80. The market trend is bullish in the short term.