USOIL Reaches $89.75 High as It Risks a Decline to $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 reaches bullish exhaustion as it risks a decline to $76. Buyers are attempting to push the index to the previous highs. In previous upward moves, the index was repelled at the $93 and $97 highs. However, WTI is already trading in the overbought region of the market. Further upward movement of the index is doubtful. On the downside, USOIL will decline to the previous low at $82. The bearish momentum will extend to $76 if price breaks below the moving average lines.

Daily Chart Indicators Reading:
WTI is moving uphill as it reaches Relative Strength Index level 55 for period 14. It suggests that the index is in the uptrend zone and may further rise. The moving average lines are now positioned below the index price bars. This explains that WTI may further rise. SMA lines for the 21-day and 50-day periods are sloping downward, indicating a decline.

USOIL (WTI) Medium-term bias: Bearish
On the 4-hour chart, USOIL has broken above the moving average lines. The upward moves have reached the overbought region as sellers emerge. The index performed a retracement during the October 26 upturn, and a candle body tested the 78.6% Fibonacci retracement level. According to the retracement, USOIL will rise but reverse at level 1.272 Fibonacci extension, or level $89.60. From the price action, WTI is in a downward move.

4-hour Chart Indicators Reading
USOIL is in a bearish momentum below the 80% range of the daily Stochastic. The moving average lines are sloping upward indicating the uptrend.

General Outlook for USOIL (WTI)
USOIL (WTI) is declining as it risks a decline to $76. The index will decline to the previous lows. The bearish momentum will extend to $76 if price breaks below the moving average lines.


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