USOIL struggles to move up since announcement of supply boost by OPEC. On 20th July 2021 price found its support at 65.11 USD. On 9th August 2021 price again dropped and halted its decline at 65.17 USD (6 cents above support). After that 2 trading sessions with higher low and higher high followed. RSI seems to develop similar pattern as price itself. It did not cross below 30 points to the oversold zone. Instead it reversed above this level. This is normally associated with corrections in strong bull trends of higher degree. MACD is bearish but flattening out. Stochastics strives to reverse to the upside as ADX contains low value. We think these circumstances could potentionally signal temporary bottom for USOIL and thus end of correction. We would like to set short term price target for USOIL to 70 USD. Our medium term price target remains 77.50 USD and our long term price target remains 80 USD.
Developements from 5th August 2021: Here we expressed our belief that 65 USD support level would hold in case of further selling pressure.
Disclaimer: This analysis is not intended to encourage buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.