USOIL - An attempt to support the price fails
Updated
On 17th August 2022, we warned that the oil market might be positioning itself for a downtrend correction. Accordingly, we said we would pay close attention to the sloping resistance and a potential breakout above it.
Then, a few days later, the breakout occurred, and the price of USOIL spiked to 97.65 USD. Meanwhile, we abandoned our bearish price targets due to the OPEC considering production cuts. However, we also stated that the retracement (below the sloping resistance) could be utilized as short position re-entry.
Finally, after the OPEC announcement, we said the production cut would have a minimal impact on the market. So today, we would like to update price targets for USOIL. Our new short-term price target is 80 USD, and our long-term price target is 70 USD.
Illustration 1.01
The image above shows the daily chart of USOIL. It also depicts the bullish breakout above the sloping support/resistance and subsequent bearish retracement.
Technical analysis - daily time frame
RSI, Stochastic, and MACD are bearish. DM+ and DM- are bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 shows simple support and resistance levels for USOIL. The yellow arrow indicates the most recent bearish breakout.
Technical analysis - weekly time frame
RSI, Stochastic, and MACD are bearish. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Then, a few days later, the breakout occurred, and the price of USOIL spiked to 97.65 USD. Meanwhile, we abandoned our bearish price targets due to the OPEC considering production cuts. However, we also stated that the retracement (below the sloping resistance) could be utilized as short position re-entry.
Finally, after the OPEC announcement, we said the production cut would have a minimal impact on the market. So today, we would like to update price targets for USOIL. Our new short-term price target is 80 USD, and our long-term price target is 70 USD.
Illustration 1.01
The image above shows the daily chart of USOIL. It also depicts the bullish breakout above the sloping support/resistance and subsequent bearish retracement.
Technical analysis - daily time frame
RSI, Stochastic, and MACD are bearish. DM+ and DM- are bearish. Overall, the daily time frame is bearish.
Illustration 1.02
Illustration 1.02 shows simple support and resistance levels for USOIL. The yellow arrow indicates the most recent bearish breakout.
Technical analysis - weekly time frame
RSI, Stochastic, and MACD are bearish. DM+ and DM- are bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Trade closed: target reached
Our short-term price target of 80 USD was reached today.
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