USOIL drags, heading for a possible plunge?
“Oil price slumps further as sentiment remains sour.”
Global oil price is feeling the blues as investors’ sentiment remain fragile over slowing economic growth and supply concerns. Exports from Russia remains diminished due to sanctions from the United States. While the impact was partially mitigated by global petroleum reserves, it may not sustain if the issue were to prolong. This may jeopardize global economy as higher inflation may derail the effort for further recovery.
Quick recap on USOIL
USOIL tumbled sharply as it fails to overcome previous hurdle at around 125.00.
USOIL Weekly Technical Analysis
From weekly perspective, MACD has formed negative divergence, suggesting possible resumption of bearish bias.
USOIL Daily Technical Analysis
From daily perspective, while the commodity is skewed towards bearish, it requires a confirmatory close below 109.00.
Trading Idea
ORDER: SELL STOP
ENTRY: 105.00
STOP LOSS: 110.00
Target 1: 99.00
Target 2: 95.00
ZFX Analyst’s Comment
With negative divergence forming in the weekly chart, the commodity is skewed towards the downside, at least for short to mid-term. However, a close below current support level is required to attain more confirmation.
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