WTI oil - 100 USD in sight

Over the past two months, we expressed our belief that the oil bull market was peaking. Indeed, we previously set a short-term price target for USOIL at 100 USD, medium-term at 95 USD, and long-term at 90 USD. Despite wild price swings up and down, we stayed bearish, and we continue to maintain this stance also today. Therefore, we have no reason to change our price targets.

Illustration 1.01

The picture shows bearish breakouts below the trendline.

Technical analysis - daily time frame
RSI, Stochastic, and MACD are all bearish. The same applies to DM+ and DM-. Overall, the daily time frame is bearish.

Illustration 1.02

The illustration portrays the daily chart of USOIL. First, the price can be seen dropping below the 20-day SMA, which is bearish. Then, after a new low, the retracement toward 20-day SMA acted as a downtrend correction. Currently, we will watch out for a bearish crossover between 20-day SMA and 50-day SMA.

Technical analysis - weekly time frame
RSI and Stochastic turned bearish. MACD also turned bearish, but it still stays in the bullish territory. DM+ and DM- remain bullish. Overall, the weekly time frame is turning bearish from bullish.

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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Our price target of 100 USD was reached.