Technical Analysis: USOIL

USOIL hit a five-month low

On Tuesday, lowered by multiple negative factors, USOIL was capped and declined. At one point, it broke below the US$58 mark and hit a five-month low.

Crude oil market will face excessive supply, the IEA said

OPEC+ and its competitors increase oil production, while the demand for oil is still sluggish, therefore, there will be a four million barrels per day of excessive supply in global oil market next year, the IEA expected.

Trade tension escalated

On Tuesday, The US and China started to impose extra port fees on ocean liner companies, further raising trade tension.

The bearish market trend prevailed

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, KDJ went downwards after death cross occurred, showing that USOIL will fall further. Investors should focus on whether USOIL will break through the support at 56.6. It will fall with potential support at 55.2 if it breaks below 56.6.

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether USOIL will break through the resistance at 59.5. It will fall if it rebounds but is capped at 59.5.

Key resistance: 59.5,60.6

Key support: 56.6,55.2

Generally speaking, the bearish market trend prevailed in the short term. Investors could sell as USOIL rebounds during the day.