Technical Analysis: USOIL

USOIL climbed to a one-week high

On Monday, USOIL climbed to the highest level since 7^th November. It ended up 1.51% at US$78.41 per barrel.

OPEC believed petroleum market was strong

On Monday, OPEC announced the November petroleum market report, showing petroleum market was strong. In addition, OPEC raised slightly the forecast for 2023 global petroleum demand from 2440 thousand barrels per day to 2460 thousand barrels per day.

Petroleum production will decline in America’s major shale oil-producing areas

Petroleum production in America’s major shale oil-producing areas will fall for the second straight week, the EIA said on Monday. Petroleum production was expected to fall from 9,653 thousand barrels per day to 9,652 thousand barrels per day.

USOIL is likely to rebound in the short term

the Chart of the Day

On the chart of the day, USOIL continued rebounding from a low level. The market trend is bullish in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing USOIL will rise further. USOIL will jump further with potential resistance at 83.3 if it breaks above the resistance at 80.0.

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 the market trend is bullish. Investors should focus on whether USOIL will break through the support at 77.0. USOIL will rise further if it retreats but is steady above 77.0.

Key resistance: 80.0, 83.3

Key support: 77.0, 75.4

Generally speaking, as concerns on oil demand eased, USOIL was expected to rebound in the short term. Investors should focus on IEA’s monthly crude oil market report during the day.