Technical Analysis: USOIL

USOIL surged more than 3%

On Tuesday, affected by the escalation of tensions in the Middle East, USOIL once rose 5%, reaching a high of $71.64 per barrel. It ended up 3.48% at $70.53 per barrel.

Tensions in the Middle East escalated again

Tensions in the Middle East escalated again on Tuesday, which increased concerns about supply in the crude oil market and boosted USOIL.

OPEC production fell in September

The survey showed that OPEC's crude oil production fell by 480,000 barrels per day in September to 26.61 million barrels per day.

Technically speaking: USOIL stabilized and rebounded

the Chart of the Day 

On the 4-hour chart, USOIL stabilized and rebounded from a low level. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing USOIL will rise further. Investors should focus on whether USOIL will break through the resistance at 72.2. It will rise further with upper resistance at 73.8 if it breaks above the resistance at 72.2.

4-hour chart 

On the 4-hour chart, USOIL stabilized and climbed. The bullish market trend prevailed. In terms of technical indicators, MACD went upwards after golden cross occurred, showing that the market trend is bullish. Investors should focus on whether USOIL will break through the support at 69.0. It will rise further if it retreats but is stable above 69.0.

Key resistance: 72.2,73.8

Key support: 69.0,66.2

Generally speaking, affected by multiple positive factors, USOIL is more likely to rise further in the short term. Investors should focus on EIA inventory data during the day.