USOIL Moves in a Range as It Challenges the Resistance at $80

Key Resistance Levels: $80.00, $84.00, $88.00
Key Support Levels: $66.00,$62.200,$58.00

USOIL (WTI) Long-term Trend: Bullish
The USOIL index is correcting upward as it challenges the resistance at $80. WTI has surpassed the 21-day line SMA and is closing in on the 50-day line SMA. If the 50-day simple moving average (SMA) is broken, the bullish momentum will be extended to the previous high of $92. Meanwhile, on the December 14 uptrend, a retraced candle body tested the 50% Fibonacci retracement line. According to the retracement, USOIL will rise to the 2.0 Fibonacci extension, or $84.43 level. WTI was trading at $79.39 at the time of writing.

Daily Chart Indicators Reading:
For period 14, WTI has risen to the Relative Strength Index level of 53. The index has entered a bullish trend zone and may rise further. Meanwhile, the index price bars remain between the moving average lines, indicating that WTI will trade in a range-bound range for the foreseeable future. The moving average lines are pointing south, indicating that the trend is bearish.

USOIL (WTI) Medium-term bias: Bullish
On the 4-hour chart, the WTI price is in an uptrend as it retests the resistance at level 80. The WTI price is making higher highs and lower lows. USOIL is trading in the market’s overbought zone. Since December 22, the upward movement has been hindered at the $80 resistance level.

4-hour Chart Indicators Reading
WTI is currently trading above the 80-point daily Stochastic level. The overbought area of the market has been reached. If the resistance is broken, the uptrend will resume. The moving average lines are above the price bars, indicating that the index will rise further. Moving average lines have an upward slope.


General Outlook for USOIL (WTI)
USOIL (WTI) is rising upward as it challenges the resistance at $80. Because WTI is confined between the moving average lines, it will be forced to move in a range. If the resistance is broken, the current uptrend will resume.

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