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Analysis and Education>Technical Analysis: USOIL

Technical Analysis: USOIL

29.09.2022

Oil price increased by 5% on Wednesday


On Wednesday, USOIL rebounded greatly and closed to $80. It finally increased by 5%. The US dollar decreased, the US treasury yield fell, the decline in US fuel inventories is higher than expected, consumer demand rebounded, geopolitical tension between the West and Russia escalated.


Nord Stream pipelines were sabotaged deliberately


Two pipelines for supplying natural gas from Russia to Nord Stream leaked on 26th September. Many EU officials doubted that pipelines were sabotaged deliberately and condemned gas leakage on 27th September. The EU governor Ursula von der Leyen said the EU would make the strongest response to the breach of European energy facilities.


US crude oil inventories decreased by 215,000 barrels unexpectedly last week


The EIA said on Wednesday that US crude oil inventories, gasoline crude oil inventories and distillate crude oil inventories decreased last week as the demand for fuel increased and oil refineries lowered oil production.


During the week ending on 23rd September, crude oil inventories decreased by 215,000 barrels to 430,600,000 barrels. However, it was expected that crude oil inventories increased by 443,000 barrels.


USOIL rebounded steadily from a low level


On the chart of the day, USOIL broke above the insidebar pattern yesterday. The market trend is bullish in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, indicating that USOIL will rebound further. If USOIL continues rising, investors should focus on whether USOIL will break through the resistance at 86.66.


On the 4-hour chart, double bottom occurred in the short term. The market trend is bullish. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that the market trend is bullish. USOIL will rise further if it is stable above the support at 79.45.


Key resistance: 83.90, 86.66

Key support: 79.45, 76.64

 

Generally, US crude oil inventories decreased. The decline in US dollar supported oil price. The West doubted that pipelines were sabotaged deliberately, which boosted geopolitical tension. Oil price rose to 80 again, and the market trend was bullish in the short term. 

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