Oil volatility increased but still remaining above the dynamic level. Oil to break above psychological event-level $43.50 area in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
September 2, 2020, | AtoZ Markets – Oil is currently trading around $43 area and trying to climb higher. However, the price broke above the dynamic level of 20 EMA on the intraday chart. As per the current price action, WTI may face strong resistance around $43.50 area again in the coming days.
WTI Crude futures expanded gains on Wednesday after a greater than-anticipated attract U.S. crude reserves and as strong U.S. and Chinese manufactory work fuelled good faith of recuperation from the COVID pandemic, boosting investor hazard craving. Moreover, U.S. WTI crude inventories fell by 6.4 million barrels in the week to August. 28 to 501.2 million barrels, the American Petroleum Institute (API) stated, against experts’ desires for a draw of 1.9 million barrels.
Oil to Break Above as the Global Economy Recovering From COVID – 19
WTI is currently residing near $43 area and trying to extend its recovery. Furthermore, the price also broke above the Bollinger Bands middle band on the intraday chart.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil to break above and currently trading around $43 area. As per the current price action, if the price pushes higher and breaks above $43.50 area with an impulsive bullish candle, the bulls may sustain the bullish pressure towards $45 area in the days ahead. Alternatively, if the price reaches $43.50 area and rejects with an impulsive bearish candle close, the bears may regain momentum and decline towards $41.50 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Band‘s lower band and middle band. So, the dynamic level may work as strong support to push the price upward. Besides, the Bollinger Band’s middle band and the lower band may work as a confluence of the dynamic level in the coming days.
WTI May Recover Towards March’s High
According to the daily chart, Oil to break above as the dynamic level was carrying the price from an extended period. As per the current price action, if the price can break above $43.50 area with an impulsive bullish candle close, the bulls may recover higher towards $45 area as a first target. The second target will be $48 area if the price breaks above $45 area in the coming days.
Image: Oil Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price, which may carry the price as strong support. Besides, the MACD lines are currently residing above 0.00 level, which indicates that the bulls are still trying to hold the bullish momentum.
To conclude, as the global economy is recovering slowly and the industries are reopening. There is a high chance that Oil may move further upward. A daily close is required to identify the definite momentum in the coming days.