Listen to the latest market mood for the USOIL.
Oil prices have fallen on Tuesday around concerns that a sharp rise in new coronavirus cases, largely from the US, will hinder any recovery in fuel demand. Sixteen US cases have reported increases in new COVID-19 cases in the first five days of July according to Reuters.
Therefore, expect oil sellers from resistance levels around the 200DMA on the daily chart. Expect a break of the descending trend line to find sellers.
Day trade outlook – We expect this trade to play out before the close of the US session However, the trade will remain valid for as long as its underlying factors remain valid.
- A lack of concern over rising US COVID-19 cases will invalidate this outlook.
- f we see a return to risk-on trading this will invalidate the outlook and support oil prices.