Tuesday Technical Outlook for Crude Oil (USO)

Tuesday Technical Outlook for Crude Oil (USO)

Tuesday Technical Outlook for Crude Oil (USO)


After Friday’s choppy session, WTI Crude Oil futures finished lower Monday, pulling back from 5 month highs marked last week.

West Texas Intermediate Crude Oil settled at 42.64 on the NYMEX, -1.09, or 2.5% on the day capping a 4 day winning streak.

Investors assessed the potential effects of Saudi Arabia’s economic reform plan announced Monday, which aims to reduce its dependence on Crude Oil, as a US private data forecaster reported an over 1.5-M bbl  increase in stockpiles at the Cushing, OK delivery hub in the week ended 22 April.

The Black Gold trades near its daily low of 42.57, and the daily shows that the technical indicators have turned due South from overbought marks, holding far above their mid-lies, in line with further declines, particularly on a break below 42.00.

Near term, the 4 hours supports more declines, as indicators are Bearish biased within negative territory, although the 100 and 200-Day SMA’s continue grinding higher well below the current mark seeing 40.70.

Support marks: 42.10 41.40 40.70
Resistance marks: 43.10 43.80 44.50

Stay tuned…

Paul Ebeling

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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