USOIL Rebounds Above $94 but Struggle To Sustain Above $104 High
Key Resistance Levels: $80.00, $84.00, $88.00
Key Support Levels: $66.00,$62.200,$58.00
USOIL (WTI) Long-term Trend: Bullish
USOIL price has regained bullish momentum as it struggle to sustain above $104 high. The downtrend subsided after falling to the low of $92. 96 as bulls bought the dips. On April 12, WTI rebounded as price rallied above the moving averages but pulled back. The index is retesting an overbought region of the market. On the upside, if the current bullish momentum is sustained, USOIL will rise and revisit the high of $116. Conversely, if the index faces rejection and falls below the 21-day line moving average, the market will resume a sideways move between the moving averages.
Daily Chart Indicators Reading:
USOIL is at level 51 of the Relative Strength Index for period 14. It indicates that there is a balance between supply and demand. The index price is between the moving averages indicating a possible range bound move. The 21-day SMA and the 50 –day SMA are sloping horizontally indicating a sideways move.
USOIL (WTI) Medium-term bias: Bullish
On the 4-hour chart, the index has resumed an uptrend as price breaks above the moving averages. WTI is trading in an overbought region of the market. Meanwhile, on April 13 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that the index will rise but reverse at level 1.272 Fibonacci extension or level $105.37.
4-hour Chart Indicators Reading
WTI is above the 80% range of the daily stochastic. The index is in the overbought region of the market. Sellers will emerge in the overbought to push prices down. The 21-day and 50-day SMAs are sloping upward indicating the uptrend.
General Outlook for USOIL (WTI)
USOIL (WTI) is in an uptrend as it struggle to sustain above $104 high. The market is likely to continue on the upside as the RSI is at level 51. However, the index is experiencing a minor retracement. The uptrend will continue if the current bullish momentum is sustained above the moving averages.
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