USOil (WTI) Rejects Resistance And Confirms Downward Momentum Below Key Levels

Market Analysis – May 9

USOil rejects resistance and confirms downward momentum below key levels. The 9-day Simple Moving Average (SMA) at $59.10 is currently positioned just below the daily close of $60.00, serving as dynamic resistance. The Stochastic Oscillator shows a slight uptick, with %K at 48.93 and %D at 37.81, suggesting the possibility of a short-term bounce. However, this movement is occurring within a broader bearish trend, and the absence of a crossover near overbought levels implies that any rally may be limited or short-lived.

USOil Key Levels

Resistance Levels: $61.80, $65.30, $72.00
Support Levels: $55.20, $52.00, $50.10

USOil Long-Term Trend: Bearish

The price action reveals a clear rejection from the $61.80 supply zone and order block (OB), which previously served as support and now acts as resistance. The bearish engulfing candle that followed the test of this level reinforces the bearish sentiment. The market structure has shifted to a series of lower highs and lower lows since the breakdown from $72.20, confirming sustained seller control. The inability to maintain levels above $60.00 further highlights bearish dominance.

The outlook for USOIL remains bearish as long as price stays below the $61.80 resistance. Continued selling pressure is likely to drive price toward the next significant support at $55.20. A break below $55.20 could lead to deeper declines targeting $52.00 or even $50.10. Unless price reclaims and holds above $61.80, any upward attempts are expected to encounter strong resistance and renewed selling interest. Traders may look to forex signals for additional confirmation during key market turns.

USOil Short-Term Trend: Bearish

The overall trend in USOIL remains bearish. Price is currently trading just below the $61.80 critical supply zone. A clear continuation of the bearish trend is expected as price approaches this premium area.

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