Technical Analysis: USOIL

USOIL hit a 3-month low

On Monday, USOIL plunged by more than 2%. It broke below the US$68 mark and reached the lowest level since 10^th December 2024 at one point.

OPEC+ will increase oil production gradually from April

Eight OPEC members and other non-OPEC oil producers will increase oil production gradually from the 1^st April to ensure oil market stability, according to the statement from the OPEC on the 3^rd March.

New tariffs were set to take effect in the US on imports from Canada and Mexico

A new 25% tariff will take effect on the 4^th March in the US on imports from Canada and Mexico, and there is no room for negotiation, the US President Trump said on Monday.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USOIL was prone to fluctuation and fell. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that USOIL will fall further. Investors should focus on whether USOIL will break through the support at 66.5. It will decline further with potential support at 64.7 if it breaks below 66.5.

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation and fell. The market trend was bearish. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that the bearish market trend prevailed. Investors should focus on whether USOIL will break through the resistance at 69.2. It will decline further if it rebounds but is capped at 69.2.

Key resistance: 69.2, 70.6

Key support: 66.5, 64.7

Generally speaking, the bearish market trend prevailed in the short term. Investors should focus on US API crude oil inventories during the day.