USOIL Is in a Brief Correction as It Risks a Decline to $61.40

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 downward trend as it risks a decline to $61.40. The index is currently correcting upward to retest the prior high. If the current high is rejected, the decline will resume. The $76 support has been in place since September 26. However, given the current fall, WTI will continue to decline. On November 28, WTI turned around its bearish trend and retraced its candle body to test the 61.8% Fibonacci retracement line. The correction predicted that USOIL would fall to the level represented by the 1.618 Fibonacci extension, or $61.40.

Daily Chart Indicators Reading:
WTI is at level 40 according to the Relative Strength Index for period 14. The index is still in a downtrend and could continue to fall. A further decline is suggested now that the index price bars are below the moving average lines. The southern sloping 21-day and 50-day SMA lines show a downturn.

USOIL (WTI) Medium-term bias: Bearish
USOIL is in a downtrend on the 4-hour chart but it is making an upward correction. The upward correction has broken above the moving average lines. Coincidentally, it is retesting the previous support, now resistance at $76. WTI may face selling pressure as the market reaches the overbought region.

4-hour Chart Indicators Reading
WTI crosses into the overbought zone when the Relative Strength Index for period 14 is above level 80. In the overbought area of the market, sellers will start to appear. The 50-day line SMA is currently rejecting the index.

General Outlook for USOIL (WTI)
USOIL (WTI) price is in a downtrend as it risks a decline to $61.40. If the price is rejected at the $76 resistance level, the downturn would resume. The price of USOIL is anticipated to fall to $61.40 low.


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