Technical Analysis: USOIL

USOIL Climbed after Falling for Three Consecutive Days

On Monday, USOIL increased by around 2% after falling for three consecutive days. It ended at US$71.27 per barrel on Monday.

The US Announced the Crude Oil Repurchase Program

The US Department of Energy said on Monday that it will add 3 million barrels of crude oil into SPR, adding that the delivery date is August. It also asked sellers to offer quoted price before May 31.

Crude Oil Exports were Expected to Plunge in May

As the voluntary production reduction by Saudi Arabia ans other OPEC+ countries took effect, crude oil exports plunged from 7,580 thousand barrels per day in April to 6,480 thousand barrels per day in May in Saudi Arabia.

USOIL Rebounded in the Short Term

the Chart of the Day

On the chart of the day, USOIL climbed yesterday after falling consecutively. In terms of technical indicators, KDJ went upwards after golden cross occurred, demonstrating that USOIL will rise further. USOIL will climb further if it is stable above the support at 69.4.

4-hour chart

On the 4-hour chart, USOIL rebounded from a low level. The market trend is bullish in the short term. In terms of technical indicators, MACD went upwards after golden cross occurred, demonstrating that the market trend is bullish. USOIL will climb further with potential resistance at 74.0 if it breaks above the resistance at 72.0.

Key resistance: 72.0, 74.0

Key support: 69.4, 68.0

Generally speaking, boosted by many positive factors, USOIL is likely to climb in the short term. Investors should focus on API crude oil inventories during the day.