Technical Analysis: USOIL

USOIL plunged 5%

On Tuesday, USOIL plunged 5%. It fell below the $70 mark, hitting an 8-month low.

Libya's supply disruption is expected to end

On Tuesday, the governor of the Libyan Central Bank said that Libyan factions were close to reaching an agreement and the country's oil production of more than 500,000 barrels per day was expected to resume.

The US manufacturing industry remained sluggish in August

Data released by the US Institute for Supply Management showed that the US ISM manufacturing PMI in August was 47.2, lower than the expected 47.5 and higher than the previous value of 46.8; the US ISM manufacturing new orders index fell to the lowest level since May 2023.

Technically speaking, the bearish market trend prevailed

the Chart of the Day 

On the chart of the day, USOIL plunged yesterday. The bearish market trend prevailed. In terms of technical indicators, MACD went downwards after death cross occurred below the 0 axis, showing USOIL will fall further. Investors should focus on whether USOIL will break through the support at 68.0. It will fall further with potential support at 66.9 if it breaks below 68.0.

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation and declined. The bearish market trend prevailed. In terms of technical indicators, KDJ went downwards after death cross occurred, showing that the market trend is bearish. Investors should focus on whether USOIL will break through the resistance at 71.3. It will fall further if it rebounds but is capped at 71.3.

Key resistance: 71.3,73.8

Key support: 68.0,66.9

Generally speaking, lowered by multiple negative factors, USOIL is more likely to fall in the short term.