USOIL Regains Bullish Momentum but Faces Rejection at $106
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 has resumed an upward move but faces rejection at $106. Since March 9, the index has been in a downward move as price fell and found support above the 50-day line moving averages. On March 17, the WTI regained bullish momentum above the moving averages. There is a tendency for the market to rise to the previous highs. The current upward move is hampered at the resistance of $106. The upward move will resume if the current resistance is breached. The index will rise to retest the previous high of $130.
Daily Chart Indicators Reading:
USOIL is at level 54 of the Relative Strength Index for period 14. WTI is in the uptrend zone as it continues to make higher highs. The index price is above the moving averages indicating a possible rise in prices. The 21-day SMA and the 50 –day SMA are sloping upward indicating the uptrend
USOIL (WTI) Medium-term bias: Bullish
On the 4-hour chart, the index is in an upward move as price breaks the 21-day line SMA but it is stuck below the 50-day line SMA. Meanwhile, on March 18 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that the index will rise to level 1.618 Fibonacci extension or $112.72.
4-hour Chart Indicators Reading
WTI is above the 80% range of the daily stochastic. WTI is trading in the overbought region of the market. The current bullish move is likely to 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) has regained bullish momentum but faces rejection at $106. The index is facing rejection at the overbought region of $106. The index has retraced and resumed upward. The current bullish move is likely to reach a high of $112.
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