USO ETF: a short trading idea for 21 September 2023
Oil prices have recently reached new highs compared to last year, because of the US suspending the sale of oil from its reserves, and OPEC+ limiting its production. These actions created a deficit of 'black gold' in the market, which has pushed prices up.
However, yesterday, 20 September 2023, the US Federal Reserve announced the likelihood of another interest rate hike. This served as a powerful trigger for a decrease in the prices of commodities, including energy.
Therefore, our focus today is on the USO ETF chart, which invests in oil futures and whose value is also dependent on oil prices. On the D1 timeframe, resistance has formed at 82.33 with support at 77.39. On the H1 timeframe, the local upward trend was broken. If quotes break through the level of 77.39 downwards, they may decline to 75.65 with a further correction or continuation of the trend.
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Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.87% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
However, yesterday, 20 September 2023, the US Federal Reserve announced the likelihood of another interest rate hike. This served as a powerful trigger for a decrease in the prices of commodities, including energy.
Therefore, our focus today is on the USO ETF chart, which invests in oil futures and whose value is also dependent on oil prices. On the D1 timeframe, resistance has formed at 82.33 with support at 77.39. On the H1 timeframe, the local upward trend was broken. If quotes break through the level of 77.39 downwards, they may decline to 75.65 with a further correction or continuation of the trend.
----
Ideas and other content presented on this page should not be considered as guidance for trading or an investment advice. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.87% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.