Crude oil remained volatile around 78.845. The downward pressure on oil prices was mainly due to concerns about potential decline in demand and increase in oil supply, as well as pessimistic PMI data. U.S. officials are also drafting a proposal that would ease sanctions on Venezuela's oil sector, allowing more companies and countries to import its crude if the country moves toward free and fair presidential elections.
Crude oil USOil - 4-hour K-line chart shows:
Brief technical analysis:
Looking at the 4-hour chart: after the short-term volatility of the market, there are signs of reversal and upward movement, and the bullish sentiment emerges. The MACD indicator is in the bearish area to maintain consolidation, and the RSI indicator is hovering weakly below the 50 balance line;
Resistance levels: 79.240 79.662
Support: 78.184 77.834
Trading strategy: Bullish above 78.638, target 79.240 79.662
Alternative strategy: bearish below 78.638, target 78.184 77.834