USOil, Daily and Weekly
USOil has fallen to one-week lows of $68.61, retreating from the near two-month high of $71.40 that was seen on the approach of tropical storm Gordon to Gulf of Mexico energy infrastructure. The storm unexpectedly weakened before making landfall, resulting in no reported damage to rigs. While the storm shut-in 9% of U.S. production, output should return to normal in a matter of days.
Taking a technical look at USoil, the asset remain in the longterm in a bullish trend since June 2017. The energy asset is likely to continue being traded with some further upside strength. The overall positive picture comes initially, as it is traded for a 3rd consecutive week above Support at 64.00. The asset is moving, within upper Bollinger Bands and strongly supported by 50-week SMA since September 2017. The long-term oscillators, like RSI, suggest that the upside momentum has further steam to the upside, as RSI is above neutral sloping positively. MACD presents an inverse picture as it is decreasing below its signal line, however it is still well above the neutral zone.
Hence,on the upside, after the break of the $70.50 barrier, the next Resistance levels come at the 61.8% Fibonacci Extension at $71.60. A closing, today, above the latter could imply that bulls are trying to gain the control of the instrument and hence to retest the round $74.00 level. Further gains above this barrier could suggest a strong positive move, up to 2-year highs and the confluence of 127.2 FE and 61.8% Fibonacci level set since 2014 drift, at the $79.00- $81.00 area. This is considered to be a strong Resistance area, hence a retracement to the downside is possible once the asset manages to reach this area.
In case of a correction lower, immediate Support to declines may be found at August lows and 50-week SMA, at 64.00 A downside break of this Support level could open the way for the 3-month lows at $63.10-$63.30 area, marked by the June's lows. Even lower, declines may stall near 59.00 (38.2% Fibonacci level and 20-month SMA).
USOil has fallen to one-week lows of $68.61, retreating from the near two-month high of $71.40 that was seen on the approach of tropical storm Gordon to Gulf of Mexico energy infrastructure. The storm unexpectedly weakened before making landfall, resulting in no reported damage to rigs. While the storm shut-in 9% of U.S. production, output should return to normal in a matter of days.
Taking a technical look at USoil, the asset remain in the longterm in a bullish trend since June 2017. The energy asset is likely to continue being traded with some further upside strength. The overall positive picture comes initially, as it is traded for a 3rd consecutive week above Support at 64.00. The asset is moving, within upper Bollinger Bands and strongly supported by 50-week SMA since September 2017. The long-term oscillators, like RSI, suggest that the upside momentum has further steam to the upside, as RSI is above neutral sloping positively. MACD presents an inverse picture as it is decreasing below its signal line, however it is still well above the neutral zone.
Hence,on the upside, after the break of the $70.50 barrier, the next Resistance levels come at the 61.8% Fibonacci Extension at $71.60. A closing, today, above the latter could imply that bulls are trying to gain the control of the instrument and hence to retest the round $74.00 level. Further gains above this barrier could suggest a strong positive move, up to 2-year highs and the confluence of 127.2 FE and 61.8% Fibonacci level set since 2014 drift, at the $79.00- $81.00 area. This is considered to be a strong Resistance area, hence a retracement to the downside is possible once the asset manages to reach this area.
In case of a correction lower, immediate Support to declines may be found at August lows and 50-week SMA, at 64.00 A downside break of this Support level could open the way for the 3-month lows at $63.10-$63.30 area, marked by the June's lows. Even lower, declines may stall near 59.00 (38.2% Fibonacci level and 20-month SMA).
USOil has fallen to one-week lows of $68.61, retreating from the near two-month high of $71.40 that was seen on the approach of tropical storm Gordon to Gulf of Mexico energy infrastructure. The storm unexpectedly weakened before making landfall, resulting in no reported damage to rigs. While the storm shut-in 9% of U.S. production, output should return to normal in a matter of days.
Taking a technical look at USoil, the asset remain in the longterm in a bullish trend since June 2017. The energy asset is likely to continue being traded with some further upside strength. The overall positive picture comes initially, as it is traded for a 3rd consecutive week above Support at 64.00. The asset is moving, within upper Bollinger Bands and strongly supported by 50-week SMA since September 2017. The long-term oscillators, like RSI, suggest that the upside momentum has further steam to the upside, as RSI is above neutral sloping positively. MACD presents an inverse picture as it is decreasing below its signal line, however it is still well above the neutral zone.
Hence,on the upside, after the break of the $70.50 barrier, the next Resistance levels come at the 61.8% Fibonacci Extension at $71.60. A closing, today, above the latter could imply that bulls are trying to gain the control of the instrument and hence to retest the round $74.00 level. Further gains above this barrier could suggest a strong positive move, up to 2-year highs and the confluence of 127.2 FE and 61.8% Fibonacci level set since 2014 drift, at the $79.00- $81.00 area. This is considered to be a strong Resistance area, hence a retracement to the downside is possible once the asset manages to reach this area.
In case of a correction lower, immediate Support to declines may be found at August lows and 50-week SMA, at 64.00 A downside break of this Support level could open the way for the 3-month lows at $63.10-$63.30 area, marked by the June's lows. Even lower, declines may stall near 59.00 (38.2% Fibonacci level and 20-month SMA).