USOIL Makes an Upward Move as It May Reach a High of $84.76

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 index is correcting upward as it may reach a high of $84.76. WTI has broken through the 21-day line SMA and is approaching the 50-day line SMA. If the 50-day line SMA is breached, the bullish momentum will extend to a high of $92. Meanwhile, a retraced candle body tested the 61.8% Fibonacci retracement line on the December 14 uptrend. The retracement suggests that USOIL will rise to the 1.618 Fibonacci extension, or $81.57 level. At the time of writing, WTI was trading at $78.60.

Daily Chart Indicators Reading:
WTI has risen to Relative Strength Index level 51 for period 14. The index has entered the bullish trend zone, and it may continue to rise. Meanwhile, the index price bars are between the moving average lines, indicating that WTI will trade in a range-bound range for a few days. The moving average lines are pointing south, indicating that the trend is bearish.

USOIL (WTI) Medium-term bias: Bullish
The WTI price is in an uptrend on the 4-hour chart, with price breaking above the moving average lines. The index has risen and is approaching the market’s oversold region. Meanwhile, a retraced candle body tested the 50% Fibonacci retracement line on the December 14 uptrend. The retracement suggests that USOIL will rise to the level of the 2.0 Fibonacci extension, or $84.76. The current uptrend is being tested at the $80 high.

4-hour Chart Indicators Reading
WTI is trading above the daily Stochastic level of 40. Following the recent retracement, it has regained bullish momentum. The price bars are above the moving average lines, indicating that the index will continue to rise.

General Outlook for USOIL (WTI)
Following the recent decline, USOIL (WTI) is making an upward correction as it may reach a high of $84.76. The current uptrend may reach a high of $84.76 but will be rejected at that level. This is due to the market reaching an overbought region. Nonetheless, if buyers overcome the overhead resistance at $92.83, the downtrend may come to an end.

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