USOIL Trades in the Overbought Region as It Faces Rejection at $110.58
Key Resistance Levels: $80.00, $84.00, $88.00
Key Support Levels: $66.00,$62.200,$58.00
USOIL (WTI) Long-term Trend: Ranging
USOIL price is in a sideways trend since March 22 as it faces rejection at $110.58 . The index has been fluctuating between $98 and $115 price levels. Today, the upward move has reached the high of $110.61 but faces rejection at the resistance zone. In the previous price action, the index declined from the high of $111.34 and retested the lower price range. In the meantime, the market is facing resistance at the recent high. The index will trend when the range-bound levels are breached.
Daily Chart Indicators Reading:
USOIL is at level 57 of the Relative Strength Index for period 14. It is in the uptrend zone but it is facing 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 uptrend as the market reaches the high of $110.58. The index is facing rejection at the resistance zone
Meanwhile, on May 11 uptrend; a retraced candle body tested the 61.8 Fibonacci retracement level. The retracement suggests that the index will rise to level 1.618 Fibonacci extension or level $110.74. From the price action, the market has reached the 1.618 Fibonacci extension and it is likely to reverse.
4-hour Chart Indicators Reading
WTI is above the 80% range of the daily stochastic. The market has reached the overbought region. The index has reached bullish exhaustion. The 21-day and 50-day SMAs are sloping upward indicating the uptrend. WTI price bars are above the moving averages indicating a possible rise in the index.
General Outlook for USOIL (WTI)
USOIL (WTI) is in an upward move as it faces rejection at $110.58 . Sellers will emerge in the overbought region to push prices down. The market has been reversing at the overbought region since May 6.
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