A month ago, we noted that USOIL would likely stay stuck within the wide range between $70 and $82. We outlined several developments that pointed to a neutral trend and said that even if the price fell below $70, we would expect it to be shortlived due to the U.S. administration seeking to refill its Strategic Petroleum Reserves (SPR) near that price tag. A week later, the U.S. announced it would release 26 million barrels of crude oil into the market (in line with its mandate). However, based on the publicly available data, the Strategic Petroleum Reserves have remained unchanged since the start of 2023, at 371.58 million barrels. That indicates U.S. officials are waiting for a higher oil price at which they could unload their reserves at a profit. With the price of USOIL approaching $80 per barrel, this event might not be that far away. Our view has not changed; we still expect the oil price to stay choppy within the wide range for an unforeseeable future.
Illustration 1.01 Illustration 1.01 displays the daily chart of USOIL within the wide range and two simple moving averages. Previously, we said that the flattening of these moving averages indicated a neutral trend.
Technical analysis Daily time frame = Neutral Weekly time frame = Neutral
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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financialfreedomgoals101
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Agree with the Idea!
TheCryptagon
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