Technical Analysis: USOIL

Oil price continued rising

On Wednesday, oil price increased by more than 1%. It climbed for two consecutive trading days. The expectation that oil demand will rise in Asia boosted oil price.

China manufacturing PMI increased greatly

According to the data provided by China Federation of Logistics and Purchasing, China Manufacturing PMI (February) rose to 52.6 Vs. 50.5 (forecast). It reached the highest since April 2012, showing that the expectation that crude demand will rise climbs.

Many institutions expect that oil price will climb further

As oil demand rises in China and oil production falls in Russia, it is expected that oil price will climb to above US$90 per barrel, according to a survey given by Reuters.

The CEO of Saudi Aramco also acknowledged that oil demand was very strong in China. In addition, Trafigura said strong oil demand may raise oil price.

Jeff Currie, head of Commodity Research Department at Goldman Sachs, said in an interview on Wednesday that oil price is expected to surge sharply in the following 12-18 months, adding that crude oil price may hit US$100 per barrel in the fourth quarter of 2023 as crude oil inventories fall and money supply is stable.

Technically speaking, USOIL rebounded steadily

On the chart of the day, USOIL continued rising. The market trend is bullish in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, demonstrating that USOIL will rebound. Investors should focus on whether USOIL will break through the support at 76.6. It will climb further if it is steady above 76.6.

On the 4-hour chart, USOIL was prone to fluctuation and climbed. The market trend is bullish. As for technical indicators, MACD went upwards after golden cross occurred, demonstrating that USOIL will rise further. Investors should focus on whether it will break through the resistance at 80.0.

Key resistance: 80.0, 82.6

Key support: 76.6, 75.0

Generally speaking, oil price may reach the US$80 mark again as strong oil demand is expected to boost oil price.