Macro:
- Oil prices continued their decline following an agreement between the US and Russia to halt attacks on energy infrastructure, though without implementing a complete ceasefire.
- The market turned bearish amid expectations that Russian sanctions may be eased, potentially increasing the oil supply surplus.
- Uncertainty lingered as geopolitical tensions in the Middle East sent mixed signals. While the possibility of increased supply pushed prices down, fears of conflict disrupting oil production kept some upward pressure.
Technical:
- USOIL retested its descending channel's upper bound before rejecting the boundary and forming a bearish Engulfing Candlestick, which may provide a hint that bears are in control. The price is below both EMAs, indicating persistent bearish momentum.
- Breaking below the support at 65.80 may prompt another plunge to the 100% Fibonacci Extension at 64.00.
- Closing above 68.40 and breaking the descending channel's upper bound may shift the current structure sideways before retesting the following resistance at 70.20.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- Oil prices continued their decline following an agreement between the US and Russia to halt attacks on energy infrastructure, though without implementing a complete ceasefire.
- The market turned bearish amid expectations that Russian sanctions may be eased, potentially increasing the oil supply surplus.
- Uncertainty lingered as geopolitical tensions in the Middle East sent mixed signals. While the possibility of increased supply pushed prices down, fears of conflict disrupting oil production kept some upward pressure.
Technical:
- USOIL retested its descending channel's upper bound before rejecting the boundary and forming a bearish Engulfing Candlestick, which may provide a hint that bears are in control. The price is below both EMAs, indicating persistent bearish momentum.
- Breaking below the support at 65.80 may prompt another plunge to the 100% Fibonacci Extension at 64.00.
- Closing above 68.40 and breaking the descending channel's upper bound may shift the current structure sideways before retesting the following resistance at 70.20.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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I’ve taken a break from my public community engagements to focus on raising my three kids, but I'm rediscovering my passion for working again. Stay connected, as I plan to return and rejoin my old communities with a lot of new skills one day soon.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.