Technical analysis update: WTI oil (19th October 2021)

USOIL keeps climbing higher. However, we are growing little bit worried that price is too high at the moment. In our opinion it would be healthy for price to correct before further rise. We think that correction could take price as low as 76 USD. In medium-term and long-term we remain bullish , however, in short-term we voice our concerns. We would not be surprised to see quick drop with subsequent retracement and resumption of uptrend. Several indicators are flashing warning signals and because of that we would like to change our short-term stance to neutral.

Technical analysis
RSI is overbought. We will observe it closely and we will look for crossover below 70 points which we expect to be accompanied by selling pressure. Despite that Stochastic and MACD continue to be bullish . DM + and DM- are also bullish . ADX continues to grow which means that trend is strenghtening.

Support and resistance
Short-term support/resistance sits at 82.15 USD. Support 1 lies at 79.76 USD and Support 2 sits at 76.65 USD. Major resistance sits at 85 USD.

Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.

Trade closed: target reached:

Medium-term price target of 85 USD has been reached.