Technical Analysis: USOIL

USOIL plunged by more than 2%

On Wednesday, as the OPEC+ may take the oil production increase into account again, USOIL was capped. It ended down 2.62% at US$64.27 per barrel.

OPEC+ will take another round of oil production increase into account

OPEC+ will take oil production increase into account again, aiming to regain the market share, the sources said.

API crude oil inventories increased

US API Crude Oil Inventories (during the week ending on 29^th August) increased from -974 thousand barrels to 622 thousand barrels Vs. -3,400 thousand barrels (forecast), according to the data from the API.

The bearish market trend prevailed in the short term

the Chart of the Day

On the chart of the day, USOIL closed in negative territory yesterday. The bearish market trend prevailed in the short term. 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 63.5. It will decline further with potential support at 62.1 if it breaks below 63.5.

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 64.9. It will decline if it rebounds but is capped at 64.9.

Key resistance: 64.9,66.4

Key support: 63.5,62.1

Generally speaking, the bearish market trend prevailed in the short term. Investors should focus on US EIA Crude Oil Inventories during the day.