USOIL Strategy - Robust Service Sector Supports Temporary Oil Price Increase

Fundamental Analysis:

Recent U.S. service sector data exceeded the 50-mark, indicating expansion, with employment figures surpassing previous values, suggesting labor market stability. This optimism implies that the service sector will bolster the U.S. economy, potentially increasing crude oil demand as the economy recovers, thereby supporting oil prices. Additionally, the imminent U.S. presidential election results may introduce new policies affecting the Middle East and the U.S. economy, leading to potential oil price volatility. Investors should remain vigilant.

Technical Analysis:

On the USOIL hourly chart, a significant gap was observed, followed by continued upward momentum, with recent highs consistently updated, indicating a strong upward trend. If the support level holds without significant breakdown, the trend is likely to remain strong. It is advised to go long with a light position at the support level of 71.05, targeting 72.30, with a stop loss at 70.30.

Trading Recommendation:

Go long with a light position at the support level of 71.05, targeting 72.30, with a stop loss at 70.30.

Support level: 71.05 Resistance level: 72.30

Disclaimer: The above content is for reference only and does not represent the platform’s stance. Stick to your own strategy and ensure proper risk control.