USOIL Strategy - Demand Expected to Return, USOIL Rises Again

Fundamental Analysis:
Following the conclusion of the U.S. presidential election, Trump has been confirmed as the next president, and the Republican Party is expected to secure a majority in both the Senate and the House. This could facilitate future U.S. policy implementation, with Trump’s strong dollar stance and tariff policies likely to be enacted. This might temporarily weaken demand for dollar-denominated crude oil, causing a slight dip in oil prices. However, the recent service sector data from various countries has shown signs of stabilization, and last week’s manufacturing data also displayed stability. Additionally, China’s economy is expected to stabilize under government intervention, which could restore oil demand. Currently, U.S. oil production has decreased, and OPEC has yet to implement production increases, potentially reducing supply and helping to rebalance supply and demand, allowing oil prices to maintain an upward trend.

Technical Analysis:
On the hourly chart of the DAX index, after filling the gap, a rapid upward trend appeared, and successive bullish candles have returned above the moving average, indicating a bullish pattern. However, the KD indicator has shown a high-level bearish crossover, suggesting a possible short-term pullback. It is advised not to chase short positions during the retracement. Instead, wait for a pullback to the 71.05 support level to enter a light long position, with a target of 72.30 and a stop loss at 70.30.

Trading Suggestion:
Wait for a pullback to the 71.05 support level to go long with a light position, target at 72.30, stop loss at 70.30.

Support Level: 71.05 Resistance Level: 72.30

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