21.05.2022
Chicago 12, Melborne City, USA
Business

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.

USOIL – Daily Chart

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.

USOIL Trades in the Overbought Region as It Faces Rejection at $ 110.58
USOIL – 4 Hour Chart

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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