Technical Analysis: USOIL

USOIL surged by about 5%

On Tuesday, as Strait of Hormuz impasse disrupted world shipping, USOIL was boosted. It ended up 4.93% at US$74.31 per barrel.

Concerns on crude oil supply continued rising

As the Middle East conflict disrupted world shipping through the Strait of Hormuz recently, concerns on crude oil supply continued climbing.

Iraq may cut oil production by 3 million barrels per day

Iraq closed its largest oil field this week because its crude oil storage tanks trends to be saturated. If Strait of Hormuz impasse continues, the oil production cut will be 3 million barrels per day, accounting for two thirds of total production capacity.

The bullish market trend prevailed

the Chart of the Day

On the chart of the day, 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 USOIL will rise further. Investors should focus on whether USOIL will break through the resistance at 78.3. It will jump with potential resistance at 81.0 if it breaks above 78.3.

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 that USOIL will rise further. Investors should focus on whether USOIL will break through the support at 74.0. It will rise if it retreats but is stable above 74.0.

Key resistance: 78.3,81.0

Key support: 74.0,71.8

Generally speaking, the bullish market trend prevailed in the short term. Investors could buy as USOIL retreats during the day.