Oil broke above $40 psychological level and reached around $40.50 area. Can Oil ever reach $45 area as Coronavirus pandemic second wave sustains? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
June 3, 2020, | AtoZ Markets – Oil is currently trading around $40.30 area and trying to decline. After breaking above $40 area, WTI faced resistance around $40.50 area and had a daily close. As per the current price action, WTI is indecisive inside the ranges of $40 to $40.50 area, a breakout required to find the definite momentum in the process.
Oil price dropped today during the Asian session because of new Coronavirus pandemic outbreak. The outbreak recorded in 37 states of the United States, which has blocked fuel demand recuperation in the U.S., the world’s biggest Oil consumer. Moreover, Australia and New Zealand Banking Group (ANZ) said in a statement, “The market has become increasingly confident that easing restrictions on travel and business would boost demand for crude oil, but the pandemic’s progress threatens to derail this recovery.”
Oil Price Technical Analysis
WTI is currently residing near $40.30 area and trying to push downward. Furthermore, the price of Oil still sustained above the dynamic level of 20 EMA on the daily chart.
Image: Oil 4 Hour Chart
According to the 4-hour chart, WTI is currently residing near $40.30 area, can Oil ever reach further higher? As per the current price action, if the price can break above $40.50 area with an impulsive bullish candle close, the bulls may recover higher towards $42 area in the coming days. Alternatively, if the price breaks below $40 area, the bears may regain momentum and decline towards $37 area again.
In addition, the dynamic level of 20 EMA is currently residing below the price, which may act as a strong support to push the price upward. In contrary, if the price breaks below the dynamic level, the bears may sustain the bearish pressure further in the days ahead. Besides, the MACD lines are currently residing above the 0.00 level and gradually sloping down. It indicates bears are gaining momentum slowly. Furthermore, the histogram is also moving downward, which is a good indication of upcoming bearish pressure.
WTI Bulls May Lose Momentum
According to the daily chart, WTI is currently residing nears $40.30 area and quite indecisive. Can Oil ever reach further as the dynamic level carrying the price?
Image: Oil Daily Chart
As per the current price action, if the price can have an impulsive daily bullish close above $40.50 area, the bulls may recover higher towards $45 area in the coming days. Alternatively, if the price breaks below $40 area with a daily bearish candle, the bears may push the price downward towards $35 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as a strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level. On the other hand, the Stochastic Oscillator lines are residing below the overbought level 80 and gradually sloping down. It indicates that bulls may lose momentum in the process.
To conclude, Coronavirus second wave hit the global Oil demand; as a result, WTI price may collapse again. A daily close is required to find the definite momentum in the coming days.