USOIL (WTI) Breaks Overhead Resistance at $73, Reaches an Overbought Region

Updated:

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 an upward move as it reaches an overbought region. The index price has broken above the 21-day SMA. The bullish momentum is ongoing as price approaches the 50-day SMA. The bottom line is that if price breaks above the 50-day SMA, the upward move will be accelerated. Presently, the index is trading at $73 at press time. The upward move is doubtful as the market reaches an overbought region. Meanwhile, on December 9 uptrend; a retraced candle body tested the 61.8% Fibonacci retracement level. The retracement indicates that WTI will rise to level 1.618 Fibonacci extension or $ 79.19. From the price action, the market has reached a high of $73.72.

USOIL (WTI) Breaks Overhead Resistance at $73, Reaches Overbought Region
USOIL – Daily Chart

Daily Chart Indicators Reading:
The recent uptrend has pushed USOIL to level 52 of the Relative Strength Index for Period 14. WTI is in the bullish trend zone and capable of rising to the upside. The 21-day and 50 –day SMAs are sloping sideways.

USOIL (WTI) Medium-term bias: Ranging
On the 4-hour chart, USOIL is in a sideways move. The index has been fluctuating below the $73 overhead resistance. Today, the overhead resistance has been broken as price reaches the high of $73.95.

USOIL (WTI) Breaks Overhead Resistance at $73, Reaches Overbought Region
USOIL – 4 H-our Chart

4-hour Chart Indicators Reading
The index is above the 80% range of the daily stochastic. The index has reached the overbought region. Sellers may emerge to push prices down. The current uptrend may face rejection in the overbought region. The 21-day line and the 50-day line SMAs are sloping horizontally indicating the sideways.

General Outlook for USOIL (WTI)
USOIL is in an uptrend as it reaches an overbought region. The overhead resistance has been broken as price reaches an overbought region. The upward move is doubtful as the market reaches the overbought region. The Fibonacci tool has indicated that the market will reach a high of $79.

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.