USOIL (WTI) May Decline as It Reaches the Overbought Region AtLevel 74.21

Azeez Mustapha
31 July 2021 | Updated: 31 July 2021

Key Resistance Levels: $66.00, $70.00, $74.00
Key Support Levels: $48.00,$44.00,$40.00

USOIL (WTI) Long-term Trend: Bearish
USOIL is correcting upward. It has reached a high of $74.21. Also reached bullish exhaustion. WTI crude oil is expected to fall. Meanwhile, on July 8 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that USOIL will fall to level 2.618 Fibonacci extension or level $60.90.

Daily Chart Indicators Reading:
USOIL (WTI) is at level 56 of the Relative Strength Index period 14. It indicates that WTI is in the uptrend zone and above the centerline 50. The 21-day and 50-day SMA are sloping upward indicating the uptrend. The price bars are above the SMAs which suggests that the market will rise.

USOIL – Daily Chart

USOIL (WTI) Medium-term bias: Bearish
On the 4 hour chart, the WTI price is correcting upward. The upward correction is facing resistance at level 74.00 as the market declines. WTI price is expected to fall as it has been trading in the overbought region since July 21. Meanwhile, on July 8 downtrend; a retraced candle body tested the 38.2% Fibonacci retracement level. The retracement indicates that USOIL will fall to level 2.618 Fibonacci extension or level $60.90.

USOIL – 4 Hour Chart

4-hour Chart Indicators Reading
USOIL is above the 80% range of the daily stochastic. USOIL has reached the overbought region of the market. WTI price is likely to fall as sellers emerge in the overbought region of the market. The 21-day and 50-day SMAs are sloping upward.

General Outlook for USOIL (WTI)
USOIL (WTI) price has ended upward correction as the market resumes downward. The market has reached the overbought region. There is a likelihood of prices resuming a downward movement. According to the Fibonacci tool, USOIL will fall to level 2.618 Fibonacci extension or level $60.90.

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Azeez Mustapha

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.