Weekly USOIL Levels, Epic New Home Sales Report!

This morning’s US economic calendar features two reports from the US real estate market. First, Building Permits came in up 1.8%, well above 1.1% expected, and -4.5% previous. Second, New Home Sales came in at 679,000, a -5.6% plunge month over month. Real estate metrics are typically viewed as being leading economic indicators. These numbers suggest that contraction may be the case as we roll into 2024.

Here are a few key resistance levels worth watching in USOIL this week:
Weekly 38% Retracement, 78.95
Weekly Bollinger MidPoint, 80.73
Weekly Exponential Moving Average (EMA), 80.59
Weekly 50% Retracement, 81.03

If we see crude oil prices rally, these resistance levels will give us some solid chances to sell. For now, I’ll be looking to sell USOIL from the 78.72 area. With an initial stop loss in the neighborhood of 79.30, this trade has a great shot a producing 60+ pips on a near-1:1 risk vs reward trade management plan.