US OIL
US Oil -1.07% falling sharply, although heavily oversold. We can perceive it because it is in its lowest range of the week and of the last 10 and 60 sessions, as well. The price approaches the $60 level, with is a strong psychological level.
MACD
As we have said on other occasions, the MACD is a very interesting indicator because it shows us the inner sentiment flow. Using the MACD, we can spot when the recent trader’s sentiment is shifting. Since MACD is the subtraction of a fast moving average with a slow one we can assess which is stronger. When the MACD signal crosses over the MACD line, we can recognise that the bullish sentiment is prevailing. Likewise, the crossing under, warn us of a bear shift in opinion. Also, when we observe the MACD well below the zero line, compared to the latest MACD waves, we can detect an overbought or oversold condition in the asset.
Here, the MACD still doesn’t show signs of the end of the bearish move, but MACD is well below the zero line, and the price should find support very soon to start a minor reaction at least, after a full week dropping. That together may sign a bounce to the $65 level next week, before trying the $60 level.
Monday
From a technical perspective alone we expect the sharp bounce to start this Monday, although it may considered just technical bounce before proceeding to the $60 level. At least until the next API Crude Oil stock change due next Tuesday at 9:00 p.m UTC.
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