Technical Analysis: USOIL

USOIL broke through the $70 mark

On Wednesday, USOIL once broke through the $70 mark. It ended up 2.44% at $70.18 per barrel.

EU imposed new round of sanctions on Russia

On Wednesday, the European Union agreed to impose a new round of sanctions on Russian oil exports, which may tighten global crude oil supply, boosting oil prices.

OPEC lowered its oil demand growth forecast for the fifth consecutive month

On Wednesday, OPEC lowered its forecast for global crude oil demand growth this year and next year, the fifth consecutive month of reductions. OPEC currently expects demand to grow by 1.61 million barrels per day and 1.45 million barrels per day this year and next year, respectively, compared with previous estimates of 1.82 million barrels per day and 1.54 million barrels per day, respectively.

Technically speaking, the bullish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USOIL stabilized at a low level. The bullish market trend prevailed in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that USOIL will rise further. Investors should focus on whether USOIL will break through the resistance at 71.4. It will jump further with potential resistance at 72.5 if it breaks above the resistance at 71.4.

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, KDJ 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 69.0. It will rise further if it retreats but is stable at 69.0.

Key resistance: 71.4,72.5

Key support: 69.0,67.1

Generally speaking, USOIL is more likely to rise further in the short term. Investors should focus on IEA monthly crude oil market report during the day.