USOIL Is in the Oversold Region as the Index Holds Above $97
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 the index holds above $97. The index price is above the 50-day SMA but below the 21-day line SMA. This indicates that the market may resume a range-bound move for a few more days. Nonetheless, if the price breaks below the 50-day line SMA, the downtrend will resume. Meanwhile, on March 29 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the index will fall to level 1.618 Fibonacci extension or level $88.24.
Daily Chart Indicators Reading:
USOIL is at level 45 of the Relative Strength Index for period 14. WTI is in the downtrend zone and capable of falling to the downside. The index price bars are between the moving averages indicating a range-bound movement of prices. The 21-day SMA and the 50 –day SMA are sloping upward indicating the uptrend.
USOIL (WTI) Medium-term bias: Bearish
On the 4-hour chart, the index is in a downtrend. The bears have broken below the moving averages as price continues to fall. Meanwhile, on March 31 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement suggests that the index will fall to level 1.618 Fibonacci extension or level $94.93.
4-hour Chart Indicators Reading
WTI is below the 20% range of the daily stochastic. The market has fallen into the oversold region of the market. It indicates that the selling pressure has reached bearish exhaustion. The 21-day and 50-day SMAs are sloping downward indicating the downtrend.
General Outlook for USOIL (WTI)
USOIL (WTI) is in a downtrend as the index holds above $97. Buyers will emerge in the oversold region as the index resumes its uptrend.
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