USOil (WTI) Shows Bearish Momentum As Key Resistance Holds Strong

Market Analysis – March 28

USOil is exhibiting bearish momentum as key resistance remains firm at $70.00. Several indicators on the chart confirm this bearish outlook. The 9-day simple moving average (SMA) is positioned at $68.60, acting as dynamic support; however, price action is struggling to maintain levels above it. Additionally, the Stochastic Oscillator is in the overbought region at 87.43 and 75.24, indicating that the market is overextended and may be poised for a downward correction. The Fibonacci retracement levels highlight resistance near the 50% ($69.20) and 61.8% ($70.20) retracement zones, which align with a bearish order block, reinforcing the likelihood of rejection.

USOil Key Levels

Resistance Levels: $70.00, $77.30, $80.70
Support Levels: $67.10, $65.30, $61.70

USOil Long-Term Trend: Bearish

USOil recently attempted to break through the $70.00 resistance level but failed, forming a rejection candle with an upper wick, which signifies selling pressure. The bearish order block in the $69–$70 zone remained intact, further confirming the presence of strong resistance. This rejection, coupled with the inability to sustain higher highs, indicates a shift in market structure toward the downside. The previous swing low near $65.30 remains a crucial level to watch as sellers gain momentum.
Looking ahead, USOil is expected to decline further, with an initial target at $67.10, followed by $65.30 if the bearish momentum persists. A breakdown below $65.30 could lead to additional downside movement toward the $61.70 support level. The combination of technical indicators, resistance rejection, and a bearish engulfing pattern suggests a growing bearish sentiment in the market. Unless a bullish catalyst emerges, short positions remain favorable. Additionally, traders may look for forex signals to enhance their market decisions.

USOil Short-Term Trend: Bearish

The four-hour USOil chart reinforces the bearish trend, as price action rejects the $69–$70 order block. A clear Change of Character (CHoCH) has occurred, signaling a shift in market structure to the downside.
The Stochastic Oscillator is currently in the oversold region at 9.96 and 32.15, suggesting potential short-term exhaustion; however, bearish momentum remains dominant. Price is likely to decline further toward the $67.10 support level, with a break below potentially extending losses to $65.30.

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