Technical Analysis: USOIL

USOIL hit a two-week low

On Wednesday, USOIL fell for the second straight trading day. At one point, it broke below the US$60 mark to a two-week low.

US EIA crude oil inventories rose greatly

US EIA Crude Oil Inventories (during the week ending on 31^st October) increased from -6,858 thousand barrels to 5,202 thousand barrels Vs. 603 thousand barrels (forecast), according to the data from the EIA (Energy Information Administration).

Canada may remove the cap on energy emission

Canada may remove the emission cap for the oil businesses in specific conditions, according to the annual budget plan from Canadian Government. This boosted concerns on potential excessive oil supply.

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 terms of technical indicators, KDJ went downwards after death cross occurred, showing that USOIL will fall further. Investors should focus on whether USOIL will break through the support at 58.4. It will decline with potential support at 56.4 if it breaks below the support at 58.4.

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, MACD 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 60.2. It will fall if it rebounds but is capped at 60.2.

Key resistance: 60.2,61.7

Key support: 58.4,56.4

Generally speaking, the bearish market trend prevailed in the short term. Investors should sell as USOIL rebounds during the day.