Technical Analysis: USOIL

USOIL rose to a one-week high

On Wednesday, USOIL climbed for the third straight trading day. It was around the US$73 mark at one point and hit a one-week high.

Crude oil supply declined

Russia’s petroleum supply declined because of Ukrainian drone strike. CPC’s petroleum flows decreased by 30%-40%, which amounted to 380 thousand barrels per day.

In addition, petroleum production in North Dakota dropped by 150 thousand barrels per day because of frigid weather.

OPEC+ may postpone oil production increase plan

OPEC+ is considering postponing the monthly production increase plan which was originally scheduled for April, according to the latest news. If that happens, OPEC+ will postpone the oil production increase plan for the fourth time.

The bullish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USOIL continued climbing. 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 74.1. It will jump further with potential resistance at 76.0 if it breaks above 74.1.

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation and climbed. The bullish market trend prevailed in the short term. 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 71.6. It will rise further if it retreats but is stable above 71.6.

Key resistance: 74.1, 76.0

Key support: 71.6, 70.3

Generally speaking, the market trend is bullish in the short term. Investors should focus on US EIA crude oil inventories during the day.