USOIL - USO/USD – Oil jumped back up and set for a larger recovery.

Market Wrap

S&P 500 index has been declining and ended yesterday’s session at a new 2022 low. The selloff was resumed on the broader market fear that the recession won’t stop the Federal Reserve from raising interest rates. Apple was in the centre of the selloff and was down by 4.9%. S&P500 declined by 2.11% to 3640.47, Nasdaq was down by 2.84% and Dow Jones was down by 1.54%. Gold has staged a recovery and is not above the crucial Pivot point on the chart at $1660 (Check the below Chart). Oil is also poised for a further upside above the support level.

XAUUSD- Gold is set on a recovery path. Moved above the Pivot at $1660.

Chart of the Day – 30^th September 2022

USOIL - USO/USD – Oil jumped back up and set for a larger recovery.

Chart Analysis

USO/USD has been moving in a downward channel since June 17th and touched $76.25 this month on 26^th and jumped back up before it could drop to touch the January 2022 low of 74.27. The chart shows oil recovered from the trough of $76.25 and has been climbing back up in the past 3 sessions to touch $82.90. Currently, Oil has dropped below the Soft Support level at $81.30.

Please check the Chart Trading Insights below

• Resistance Zone: $89.50 to $91
• Key Resistance Level: $87
• Major Pivot Point: $83.50
• Key Support Level: $79.25
• Support Zone: $84 to $82
• 200 Day SMA – Green Line
• 50 Day SMA – Red Line
• 20 Day SMA – Blue Line

Daily Chart Directional bias - 2 Weeks 

Trade Insights- USOUSD

The chart shows viable Short Positions below the support at $81.30 heading towards the first target of Key Support Level at $79.25 and then test of the Support Zone at $84 to $82.

Possible entry of Short Trades below the Support Point at $81.30

Potential First take profit could be at - $79.25

Potential Second take profit could be at - $84

Potential Third take profit could be at $82

Alternatively, possible long positions if Oil jumps above the Support at $81.30 with the target to test the Pivot at 83.50 and after consolidation above this level then the test of the Key Resistance level at $87.

Possible Entry for Long trades if Oil jumps above the Support at $81.30

Potential First take profit could be at - $83.50

Potential Second take profit could be at - $87

Potential Third take profit could be at - $89.50