USOIL (WTI) Finds Support Above $80, a Retest at the $85 Resistance Is Likely

Updated:

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 is in an uptrend but it is in a sideways move below the $85 resistance level. Since October 26, the uptrend has been interrupted as the market fluctuates between $78.50 and $85. In other words, WTI price is between the two moving averages. The index is above the 50-day SMA but below the 21-day SMA. A break above the 21-day SMA will signal the resumption of the uptrend. Similarly, a break below the 50-day SMA will cause the index to fall.

USOIL – Daily Chart

Daily Chart Indicators Reading:
WTI price is between the two moving averages indicating a possible fluctuation of prices. USOIL is at level 50 of the Relative Strength Index period 14. It indicates that there is a balance between supply and demand. The 21-day and 50 –day SMAs are sloping upward indicating the uptrend.

USOIL (WTI) Medium-term bias: Ranging
On the 4-hour chart, the index is in a sideways trend. Since October 25, the bulls have failed to keep the price above the $85 overhead resistance. Today, buyers are recouping above level $80 for a possible upward move. Meanwhile, on November 11 downtrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that WTI will fall but reverse at level 1.272 Fibonacci extension or $79.01.

USOIL – 4 Hour Chart

4-hour Chart Indicators Reading
The index is below the 20% range of the daily stochastic. The stochastic bands are sloping horizontally in the oversold region. The uptrend will resume when buyers emerge in the oversold region. The 21-day and 50-day SMAs are sloping horizontally indicating a sideways trend.

General Outlook for USOIL (WTI)
USDOL is still in a sideways trend. The overhead resistance at $85 is yet to be broken. WTI is trading at $80.82 at the time of writing. Buyers have an uphill task to break above the moving averages before retesting the overhead resistance.

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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.