WTI started the week with a Bearish gap. Currently, the price is quite corrective as it bounced higher from $20 key support level. Can Oil push below record low price $20 per barrel? What are the charts and technical indicators saying? Read more to find further insights into today’s Oil Technical Analysis.
March 30, 2020 | AtoZ Markets – Oil is currently residing near $20.30 area after the price found support at $20. WTI tested $20 area several times during this Coronavirus pandemic, and a price war between two biggest Oil producer Russia and Saudi Arabia. It is to be noted that, the $20 level is the most significant and lowest of all time. According to the current price action, the price is very volatile and corrective, which may sustain like this further. Will the $20 support help Bulls to take the price higher in the days ahead?
Can Oil Recover Higher From $20 Support?
WTI price crashed today during the Asian session. The market shares gains of African Oil producing countries such as Nigeria, Angola and Algeria struggling as they cannot compete with countries like Russia and Saudi Arabia, who are flooding the market with Oil.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price is currently residing near $20.30 area after a Bearish gap took place today. The WTI attempted to break above the dynamic level of 20 EMA several times but failed.
So, if the price pushes further and close below $20 level with H4 candle, the Bears may take the price towards $15 next key support area. Alternatively, if the price sustains and close above $20 area, the Bulls may recover higher towards $27.50 area again.
Furthermore, the dynamic level of 20 EMA is residing above the current price, which may work as a resistance to push the price further lower. Besides, the MACD lines are residing below 0.00 level for an extended period while gradually moving upward. A break above 0.00 line may add some hope to the Bulls but no Bullish Divergence was spotted along the way.
Are Oil Bulls Still in the Market?
According to the Daily chart, the price is currently trading at $20.30 area while the struggle continues. WTI price declined with a gap after the market opened today. As per current price action, the price is quite volatile and corrective, and a daily close above or below the $20 key level is required to find the definite momentum.
Image: Oil Daily Chart
So, if the price close above $20 area with a daily impulsive Bullish bar, the Bulls may regain the momentum and recover higher towards $36 area in the process. On the other hand, an impulsive Bearish daily close below $20 may lead the price further towards $15 area.
Furthermore, the MACD lines are residing below 0.00 level while being at the verge of Bullish cross over. The Stochastic Oscillators lines are residing above the oversold level indicating further up move in the making.
To conclude, Oil current price action context is quite volatile and indecisive. A daily close confirmation above or below the key level is required for a definite trend in the days ahead.