Technical Analysis: USOIL

USOIL surged by around 2%

On Wednesday, USOIL surged by around 2% to the highest level since March 6.

US EIA crude oil inventories decreased

US EIA Crude Oil Inventories (during the week ending on March 8) fell from 1,367,000 barrels to -1,536,000 Vs. 1,338,000 (forecast), according to the data from the EIA.

A fire broke out in Rosneft’s largest oil refinery

On Wednesday, a fire broke out in Rosneft’s largest oil refinery, which may cause oil supply disruption in the market.

Technically speaking, the bullish market trend prevailed

the Chart of the Day

On the chart of the day, USOIL increased greatly yesterday. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing USOIL will rise further. USOIL will rise further with potential resistance at 83.2 if it breaks above the resistance at 82.0.

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 bullish market trend prevailed. USOIL will rise further it it retreats but is stable above the support at 78.3.

Key resistance: 82.0, 83.2

Key support: 78.3, 77.0

Generally speaking, as the EIA crude oil inventories decreased and concerns on oil supply disruption escalated, USOIL is more likely to rise further in the short term. Investors should focus on IEA’s monthly crude oil market report during the day.