Oil broke above $35 area and price may continue to climb further. The price of Oil managed to break above its corrective phase and jump higher. Let’s check the Oil Technical Analysis for more levels and insights.
March 11, 2020, | AtoZ Markets – Oil is currently climbing higher after its rejects $27.50 support area. The price may going to recover the losses of earlier sessions. Oil Bullish pressure may sustain and fill up the Bearish gap in the coming days.
Oil price jumped for a second day on today with the hope that the United States will cut Oil output further. The gains were very small against Monday’s crash after Russia and Saudi Arabia started a price war but still, there are certain chances. The U.S. WTI (West Texas International) crude Oil gained $1.12.or 3.3% to $35.48 a barrel. Moreover, the Brent crude Oil gained $1.44, or 3.9% to #38.66 a barrel by today.
Oil Broke Above its Corrective Cycle
Oil is now trading at $35.30 area and trying to push higher. After the Asian market open today, Oil broke above its corrective structure that is above $35 area. As per current scenario, the Bulls may continue further to engulf the Bearish gap of last Monday.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price of Oil is currently trading at $35.20 area and trying to climb higher. After a drop from $41.50 with a gap, the Oil reached $27.50 key support area. The Bulls found a floor at $27.50 area and managed to jump higher.
Moreover, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line. So, the price breaking above the dynamic level may lead the price higher with more Bullish confluence. On the other hand, the MACD lines are showing Bullish cross over, and the MACD histogram volumes are above 0.00 level and gradually squeezing higher. As a result, it indicates that the Bulls are quite strong to recover higher.
Oil Bears may Interfere at $42 Area
According to the daily chart, the Oil is currently residing at $35.20 area and trying to recovering higher. The Oil broke above $35 area by overtaking the last candle high. In case, the Bulls may take the price higher towards $42 area as a retracement. If Bears can have a strong daily close below $42 area, the Bearish trend may sustain with the target of $27.50 again in the coming days.
Image: Oil Daily Chart
To conclude, Oil may climb higher towards $42 area as it remains above $35 area with a daily close. If Bears find resistance at $42 area with a daily close, the Bearish trend may sustain towards $27.50 area in the coming days.