USOIL Struggles below $115 Resistance, May Reach the High of $126
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 continued its sideways move but may the high of $126. Since March, the index has been in a sideways move below the $115 resistance level. The market will resume an uptrend if the bulls break the resistance at $115. Meanwhile, on May 18 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement. The retracement indicates that WTI will rise to level 1.618 Fibonacci extension. From the price action, the bulls are attempting to break above the resistance at $115. A break out will propel the index to reach the high of $129.
Daily Chart Indicators Reading:
USOIL is at level 61 of the Relative Strength Index for period 14. The index is trading in the bullish trend zone but faces resistance at the recent high. The 21-day SMA and the 50 –day SMA are sloping horizontally indicating a sideways trend.
USOIL (WTI) Medium-term bias: Bearish
On the 4-hour chart, the index is in an upward move as buyers attempt to keep the price above the $115 resistance. The index is presently trading in the overbought region of the market. Therefore the current uptrend may face rejection at the recent high. Meanwhile, on May 26 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement. The retracement indicates that WTI will rise to level 1.272 Fibonacci extension or $116.36.
4-hour Chart Indicators Reading
WTI is above the 80% range of the daily stochastic. The market has reached the overbought region The uptrend will soon reach bullish exhaustion. The 21-day and 50-day SMAs are sloping upward indicating the uptrend. WTI price bars are above the moving averages indicating an uptrend.
General Outlook for USOIL (WTI)
USOIL (WTI) is in an upward move as it may reach the High of $126. The market has reached the overbought region. WTI’s upward move has reached bullish exhaustion. Further upward move is doubtful.
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