Technical analysis update: WTI oil (2nd November 2021)
USOIL ceased its decline at 80.62 USD per barrel just three days ago. Since then USOIL reversed to the upside and now it trades around 84.25 USD per barrel. In our previous two ideas we noted that despite correction in price we would remain bullish on oil in medium-term and long-term. In addition to that, we noted correction in price could serve as good (re)entry opportunity for long position. Demand continues to pick up while recovery progresses further; and we continue to maintain bullish stance as we expect price to climb even higher. We would like to set new short-term price target to 85 USD per barrel. Our medium-term price target is 87.50 USD while our long-term price target remains 90 USD.
Technical analysis
RSI is bullish as it strives to penetrate 70 points into overbought territory. If it manages to do so, then we expect such occurence to be accompanied by further rise in price. Stochastic is also bullish, however, MACD is bearish. DM+ and DM- remain bullish. Although, ADX started to decline slightly which suggests that trend is weakening. Overall we are bullish on USOIL.
Support and resistance
Major resistance sits at 85.39 USD. Short-term support sits at 82.50 USD and Support 1 lies at 80 USD. Support 2 appears at 76.95 USD while Support 2 lies at 74.21 USD. Then major support level sits at 61.58 USD.
Our latest idea on USOIL from 28th October 2021:
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Technical analysis
RSI is bullish as it strives to penetrate 70 points into overbought territory. If it manages to do so, then we expect such occurence to be accompanied by further rise in price. Stochastic is also bullish, however, MACD is bearish. DM+ and DM- remain bullish. Although, ADX started to decline slightly which suggests that trend is weakening. Overall we are bullish on USOIL.
Support and resistance
Major resistance sits at 85.39 USD. Short-term support sits at 82.50 USD and Support 1 lies at 80 USD. Support 2 appears at 76.95 USD while Support 2 lies at 74.21 USD. Then major support level sits at 61.58 USD.
Our latest idea on USOIL from 28th October 2021:
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
Trade active:
Correction resumed as low at 80.62 USD from 28th October 2021 was taken out. We abandon short-term price target until price retraces back above this level. We will now focus on 80 USD support level. We will observe whether it will manage to hold selling pressure in the following days. If support fails then we expect price to continue lower towards 78 USD pricetag.
Trade active:
Idea was updated in the following post:
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