In early April 2022, we said the oil bull market peaked. Then, a bit later, we stated that if the Russian crude oil was to be banned in the EU, we would see another bounce in price and possibly a new top. Despite that, we set a long-term price target for USOIL at 90 USD; we still hold this price target as we continue to be bearish on oil. In addition to that, we would like to set a short-term price target for USOIL at 100 USD and a medium-term price target at 95 USD.
Fundamental factors The FED is decided to pursue the destruction of demand, which will negatively impact the oil price as the stock market is poised to crash further down. Additionally, supply increases by the OPEC members threaten the high value of oil.
Illustration 1.01 The WTI crude oil is down over 20% from its peak and within the technical bear market.
Technical analysis - daily time frame RSI, Stochastic, MACD, DM+, and DM- are all bearish. The ADX increases, which signals that the bearish trend is gaining momentum. Overall, the daily time frame is bearish.
Technical analysis - weekly time frame RSI, MACD, and Stochastic are all bearish. DM+ and DM- are due to perform a bearish crossover. The ADX suggests that the bull trend has ended. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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Despite the price bounce, we maintain our price targets. We expect the bounce to be temporary.
A very high-quality analysis of the asset. I think that the immediate price reaction will help make sure of the further direction of movement. Buddy, I wonder what indicators you use in your analysis?