Technical Analysis: USOIL

USOIL fell more than 1%

On Tuesday, USOIL fell for the fourth consecutive trading day, closing down 1.33% at $72.42 per barrel.

EIA lowers price forecast

The EIA released its Short-Term Energy Outlook report on Tuesday, lowering its forecast for world oil demand in 2025 to 104.5 million barrels per day, from a previous forecast of 104.7 million barrels per day. EIA lowered its forecast for U.S. crude oil prices this year to $80.21 per barrel, 2.2% lower than the previous forecast of $82.03.

API crude oil inventories increased slightly

Data released by the API showed that the U.S. API crude oil inventories increased by 176,000 barrels in the week ending August 2, lower than the market's expectation of an increase of 850,000 barrels and a decrease of 4.495 million barrels from the previous value.

Technically speaking, the bearish market trend prevailed in the short term 

the Chart of the Day 

On the chart of the day, USOIL was prone to fluctuation and declined. The bearish market trend prevailed in the short term. In terms of technical indicators, MACD went downwards after death cross occurred, showing USOIL will fall further. Investors should focus on whether USOIL will break through the support at 70.6. It will decline further with potential support at 68.0 if it breaks below 70.6.

4-hour chart 

On the 4-hour chart, USOIL was prone to fluctuation and declined. The bearish market trend prevailed in the short term. In terms of technical indicators, RSI went downwards after death cross occurred, showing the bearish market trend prevailed. Investors should focus on whether USOIL will break through the resistance at 74.0. It will fall further if it rebounds but is capped at 74.0. 

Key resistance: 74.0,75.7

Key support:70.6,68.0

Generally speaking, affected by the EIA's downward revision of crude oil price expectations, the short-term downside risk of USOIL is relatively high. Investors should pay attention to the EIA inventory data during the day.