Oil Breaks Resistance at $52 heading towards $53.50 after recent retrace lower below $51.50. The Bullish bias regained momentum despite the correction. Let’s check Oil Technical Analysis for more levels and insights.
February 19, 2020 | AtoZMarkets – Oil is currently residing above $52.50 area with an impulsive Bullish pressure after breaking above $52. The Bullish pressure sustained quite well despite the recent dip below $51.50 area. If price manages to sustain, further upward pressure may occur in the coming days.
Oil has been quite consistent with the recent gains despite certain corrections along the way. Though China is still struggling to get on the feet again due to Coronavirus issue, the supply cut seem to support price growth as demand declined. the Organization of Exporting Countries (OPEC) and OPEC+ has been cutting supplies to support prices which may continue further until Coronavirs issue fades.
Oil Breaks $52 Barrier – What Now?
Oil is currently quite impulsive with the recent Bullish momentum which may head higher breaching above $53 as well. The price managed to sustain a comfortable gains along the way having confluence from the dynamic levels.
image: Oil 4 Hour chart
According to 4 Hour chart, the price recently retraced below $51.50 but could not sustain the Bearish pressure. Oil recently broke above the Kumo cloud resistance after the bounce from the dip. As the price bounced back, it formed Bullish Engulfing candle which was confluenced by dynamic levels. The dynamic levels like 20 EMA, Tenkan and Kijun line has been quite supportive along the way resulting in a break higher above $52.
Moreover, MACD lines residing above 0.00 line indicates strong upside pressure but certain Bearish Divergence may emerge as the price breaks above $53 area. So, price may reject Bulls as soon as it reach $53.50 area in the coming days.
Oil facing Dynamic Resistance
image: Oil Daily Chart
According to Daily chart, the price formed a Bullish Doji formation yesterday. The price did manage to push higher above $52 after recent dip but currently being held by the dynamic level of 20 EMA as resistance. As per intrday chart, it is quite clear for further upward pressure but in Daily chart, until the dynamic level is breached, price may push lower.
The price is currently Bullish but not yet confirmed of further upside pressure until a daily close above $52.50. As the price closes above $52.50, it would be quite confirm for price to reach $53.50 area in the coming days.
To conclude, Oil may reach $53.50 as it remains above $52.50 area with a daily close. Certain correction and Bearish pressure may occur as dynamic levels act as resistance in Higher timeframe.