USOIL Is In An Overbought Region As It May Decline To $89.23
Key Resistance Levels: $80.00, $84.00, $88.00
Key Support Levels: $66.00,$62.200,$58.00
USOIL (WTI) Long-term Trend: Bearish
USOIL is in a downtrend as it may decline to $89.23. In the meantime, the index is making an upward correction. The current uptrend may face resistance at a high of $111. Thereafter the selling pressure may resume to the downside. Meanwhile, on June 22 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement. The retracement suggests that WTI will fall to level 1.618 Fibonacci extension to level or $89.23.
Daily Chart Indicators Reading:
USOIL is at level 44 of the Relative Strength Index for period 14. The index is in the downtrend zone but it is making an upward correction.WTI price is below the 21-day SMA and the 50 –day SMA which indicates a possible decline. The moving averages are sloping upward indicating the previous uptrend.
USOIL (WTI) Medium-term bias: Bearish
On the 1-hour chart, the index has broken above the moving averages indicating a possible upward move. Meanwhile, on July 1 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement. The retracement indicates that WTI will rise to level 1.618 Fibonacci extension or $111.37.
4-hour Chart Indicators Reading
WTI is above the 80% range of the daily stochastic. The index has risen to an overbought region of the market. The upward move may face rejection at the recent high. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.
General Outlook for USOIL (WTI)
USOIL (WTI) is in an upward correction as it may decline to $89.23. The index will face rejection as it reaches an overbought region of the market. From the price action,it may rise to $111 high and resume selling pressure.
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