USOIL Is in an Overbought Region as It Faces Rejection at $98

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 downtrend as it faces rejection at $98. The index price is making a series of lower higher and lower lows. Today, WTI is making another lower high, preparatory for a downward move. Meanwhile, on June 22 downtrend; a retraced candle body tested the 61.8% Fibonacci retracement. The retracement suggests that WTI will fall to level 1.618 Fibonacci extension to level or $87.73. From the price action, WTI has fallen to the low of $90 and resumed upward correction.

Daily Chart Indicators Reading:
USOIL is at level 38 of the Relative Strength Index for period 14. The index is in the downtrend zone but it is approaching the oversold region of the market. WTI price is below the 21-day SMA and the 50 –day SMA which indicates a possible fall in the index price. The moving averages are sloping downward indicating the downtrend.

USOIL (WTI) Medium-term bias: Bearish
On the 4-hour chart, the index is in a downtrend as price breaks below the moving average lines. Today, the upward correction is facing rejection at a recent high. The bulls broke the 21-day line SMA but failed to break the 50-day line SMA. It implies that the index will further decline to the downside.

4-hour Chart Indicators Reading
WTI is above the 80% range of the daily stochastic. The market has reached the overbought region. The current uptrend may face rejection at the recent high. The 21-day line SMA and 50-day SMA are sloping upward indicating the uptrend.

General Outlook for USOIL (WTI)
USOIL (WTI) is in a downtrend as it faces rejection at $98. According to the Fibonacci tool analysis, the market will further decline to the low of level $87.73.


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