USOIL: Recovery rally gains momentum

Market Analysis /
Milan Cutkovic / 13 Mar 2019

 * Oil prices have recovered recently, as Saudi Arabia has announced further output cuts in April
* Furthermore, Venezuela oil exports have decreased amid power outages
* OPEC seems to be committed to reduce output further, which could support prices in the short-term
* The technical outlook for USOIL has improved following the bounce off $54.20 support
* USOIL is currently approaching $57.60 resistance and a clear breakout could potentially pave the way for an extension of the recovery rally


 * The next big levels to watch above $57.60 are $59.50/60 followed by the 200 DMA (currently around $61.50)


 * Similar price action can be seen in UKOIL
* The key level to watch is $67.70, which acted as key support/resistance several times before
* Beyond that, the 200 DMA around $70.20 is an important line to watch


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