Is It Time to Buy USOIL on Dips as KDJ and MACD Golden Crosses Flash Buy Signals?

US Crude Oil Surged Over 3%

On Monday, USOIL increased by more than 3%. It came close to the US$86 mark, reaching a one-week high.

Middle East Conflict Escalated Again

Over the weekend, renewed military strikes involving the US and Iran significantly heightened concerns regarding potential disruptions to crude oil supplies.

US Strategic Petroleum Reserve Declined

Data from the US Energy Information Administration (EIA) showed that the US Strategic Petroleum Reserve (SPR) fell by approximately 3.1 million barrels last week, dropping to 286.6 million barrels.

The bullish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USOIL was prone to fluctuation and rose steadily. The bullish market trend prevailed in the short term. In terms of technical indicators, KDJ went upwards after golden cross occurred, showing that USOIL will climb further. Investors should focus on whether USOIL will break through the resistance at 87.5. It will jump with potential resistance at 91.5 if it breaks above 87.5. 

4-hour chart

On the 4-hour chart, USOIL was prone to fluctuation 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 84.8. It will jump if it retreats but is stable above 84.8. 

Key resistance: 87.5,91.5

Key support: 84.8,83.4

Generally speaking, the bullish market trend prevailed in the short term. Investors could buy as USOIL retreats during the day.