Will Oil Break Above $74.50 Price Area to Continue the Bullish Trend?


Oil has become corrective and still trading inside the range of $72.50 to $74.50 price area. Will Oil break above $74.50 psychological resistance area to continue the bullish trend further in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.

July 1, 2021, | AtoZ Markets – Oil price rose today morning during the Asian session against the U.S. Dollar. WTI is currently trading around $74.20 price area and trying to push higher. After breaking over $72.50 to $73 resistance area, the price has become extremely volatile and trading inside the range of $72.50 to $74.50 price area for an extended period. As per the current price action context, the price may face strong resistance around $74 to $74.50 price area again in the coming days.

Oil May Break Above as the Overall Bias Is Still Bullish

WTI is currently residing near $74.20 price area and trying to climb upside. However, the price is still residing over the dynamic level of 20 EMA on the intraday chart.

Oil Break

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil is currently trading around $74.20 price area and may break above. As per the current scenario, if the price can break above $74 to $74.50 resistance area with an impulsive bullish candle, the bulls may continue the bullish trend towards $76 to $76.50 price area in the coming days. On the contrary, if the price rejects $74.50 to $74 price area with an impulsive bearish candle, the bears may regain momentum and push the price down towards $73 to $72.50 price area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may push the price higher as strong support. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands upper band is still holding the price as strong resistance.

WTI May Revert Back to the Mean

According to the daily chart, Oil may break above as the bulls are still optimistic. As per the current price action, if the price can break above $74 to $74.50 price area with an impulsive daily bullish candle, the bulls may continue the bullish trend towards $76 to $76.50 price area in the process. On the other hand, if the price rejects $74.50 to $74 price area with an impulsive bearish candle, the bears may regain momentum and push the price down towards $73 to $72.50 price area as a first target. The second target will be $71 to $70.50 price area if the price can break below $73 to $72.50 support level in the coming days.

Oil May Break

Image: Oil Daily Chart

Moreover, the dynamic level of 20 EMA is currently residing below the price, which may pull the price down as a mean reversion. Also, the MACD lines are currently residing above the 0.00 level and may have a bearish crossover. It indicates that the bears may regain momentum in the days ahead.

To conclude, as long as the price residing over $72.50 to $73 support area, the bias will remain bullish. As the overall trend is still bullish, there is a high chance that Oil may continue further upward in the coming days. 

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