WTI Crude Oil price is struggling to Break Above $25 Triangle Resistance level. WTI has been quite volatile and corrective while residing below $25 resistance area in line with Saudi – Russian production conflict and the global #covid19 economic lockdown. Let’s check Oil Technical Analysis for more levels and insights.
March 26, 2020 | AtoZ Markets – Oil is currently trading around $23.80 area while the Oil price is struggling to regain the bullish momentum. The price is currently facing resistance at $25 area and formed an ascending triangle in the process.
Due to the Coronavirus and Price War situation, Oil price is struggling to recover higher and establish above $25 area. As the demand is contracting and output rising, Oil price may struggle further to regain an impulsive bullish pressure in the process. The collapse between supply cut pact between OPEC+ may boost the oil supply in the coming days, which may lead to further volatility in the Oil market.
Recently, Crude Oil inventories rose by 1.6 million barrels being consistent for ninth straight weeks. As per the current market situation, Oil market did receive a particular lift from U.S. stimulus chatter but it is still indecisive.
Oil Struggling to Break Above Ascending Triangle Resistance
Oil is currently trading around $23.80 area and Oil Bulls are struggling to recover higher. The price maintained below $25 area from starting of this week while squeezing higher around the resistance level.
Image: Oil 1 Hour Chart
According to the 1-hour chart, Oil is currently residing around $23.80 area while trying to bounce higher from support. As per the current price action, If price can break above the ascending triangle resistance near $25 area, the price may push higher towards $36 area.
Moreover, the dynamic level of 20 EMA is residing near the current price and may support the Bulls to recover higher. Despite the recent volatility, the price residing at the edge of $25 and retesting it several times does indicate the tendency of Bulls to break higher. The price did reject from the resistance for several times but still managed to sustain the Bullish pressure near it.
Oil Bearish Trend Still Strong Enough to Sustain?
According to the Daily chart, WTI is currently residing near $23.80 area and under Bearish pressure below $25 area. Earlier, the price rejected $20 with a daily Bullish pin bar, but the Oil price is still struggling to break $25 area. As per the current scenario, the price needs to break above $25 area with an impulsive daily Bullish bar to confirm further up move in the process.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing quite far from the current price. In this case, the price may revert back to the mean. Moreover, the MACD lines are residing below 0.00 level, and at the verge of having a Bullish cross over. The RSI indicator line is residing below the oversold level 30 might add to the confluence.
To conclude, Oil Bulls are still struggling to regain sustainable Bullish momentum. Despite the recent correction, Bears are still in charge as the price remains below $25 area.