USOil (WTI) Approaches Potential Bullish Reversal From Bearish Retracement Zone

Market Analysis – February 14

USOil is approaching a potential bullish reversal from the bearish retracement zone. The daily chart indicates that the price is trading slightly below the 9-day SMA at $71.560, reflecting short-term bearish pressure. However, the Stochastic Oscillator is oversold at 7.98, suggesting a possible reversal in the near future. This confluence of indicators points to exhaustion in the current bearish retracement and the likelihood of buyers regaining control.

USOil Key Levels

Resistance Levels: $77.260, $84.490, $87.600
Support Levels: $70.000, $67.100, $65.300

USOil Long-Term Trend: Bullish

USOil has consistently respected key support levels, particularly around $67.100 and $65.300, while rejecting lower price levels. The recent bounce from $67.100 aligns with the 1.0 Fibonacci extension level, reinforcing this area as a strong demand zone. Additionally, the rejection near $70.600 highlights the market’s current range-bound movement as it anticipates a breakout.

With the bearish retracement seemingly nearing its end, USOil is likely to target the $73.900 level, corresponding to the 0.5 Fibonacci retracement. A further push toward $77.300 could occur as bullish momentum continues to build. However, failure to reverse upward at $70.000 or $67.100 support could invalidate this outlook, potentially driving prices toward $65.300 and lower. Traders utilizing forex signals may find potential opportunities in this setup.

USOil Short-Term Trend: Bullish

USOil has broken out of its descending trendline, signaling a potential bullish reversal. The price remains below the 9-day SMA at $71.120, but the Stochastic Oscillator in the oversold region supports a likely upward move.
A sustained break above $72.000 could push the price toward the $77.260 resistance level. However, failure to hold above $70.000 may invalidate the bullish outlook.

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