USOIL Recovers but Rallies to an Overbought Region at $108.54
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 but rallies to overbought region at $108.54. The index fell to the low of $101.56 and resumed upward. The current downtrend has subsided as WTI reaches the high of $107.53. WTI will regain bullish momentum if price breaks above the 21-day line SMA. The selling pressure may resume if it faces rejection at the recent high.
Daily Chart Indicators Reading:
USOIL is at level 41 of the Relative Strength Index for period 14. The index is in the downtrend zone but has regained bullish momentum. WTI price is below the 21-day SMA and the 50 –day SMA which indicates possible fall of the coin. The moving averages are sloping upward indicating the previous uptrend.
USOIL (WTI) Medium-term bias: Bearish
On the 4-hour chart, the index has been in a downward move as price breaks below the moving averages. WTI has regained bullish momentum as price breaks above the 21-day line SMA. Meanwhile, on June 16 downtrend; a retraced candle body tested the 50% Fibonacci retracement. The retracement indicates that WTI will fall to level 2.0 Fibonacci extension or $101.68. From the price action, the index has retested Fibonacci and resumed bullish momentum.
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 downward indicating the downtrend.
General Outlook for USOIL (WTI)
USOIL (WTI) is in a downward correction but rallies to nn overbought region at $108.54. This is an indication of a possible upward move of the index. The upward move is likely to be hindered as the market reaches the overbought region.
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