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.
ORDER: SELL STOP
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.
Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.
ZFX (Zeal Capital Market) is an FCA & FSA licensed online Forex & CFD broker providing more than 100 products for Forex, commodities, stock indices, and share CFDs. Open a trading account with min. USD 50 deposit and download our MT4 trading platform now!