Oil Broke Above $64 Resistance Area – Bulls to Continue Further?


Oil bulls have regained momentum after bouncing from $60.50 to $61 support level. Oil broke above $64 significant resistance area. Bulls to continue the bullish pressure 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.

April 29, 2021, | AtoZ Markets – Oil is currently trading around $64.70 area and trying to push further upside. After bouncing from $60.50 to $61 support level, the bulls pushed the price higher quite impulsively and broke over $64 to $64.50 psychological resistance area. As per the current price action context, the price may retrace downside towards the dynamic level of 20 EMA on the daily chart in the coming days.

Oil Broke Above as the Investors Are Optimistic

WTI is currently residing near $64.70 area and trying to recover higher. However, the price also broke above the Kumo Cloud on the intraday chart.

Oil Broke Above

Image: Oil 4 Hour Chart 

According to the 4-hour chart, Oil broke above and currently trading around $64.70 area. As per the current scenario, if the price can have an impulsive bullish candle close above $64 to $64.50 event area, the bulls may sustain the bullish pressure towards $66 to $66.50 key area in the coming days. On the contrary, if the price can have an impulsive bearish candle close below $64.50 to $64 area, the bears may regain momentum and decline towards $63 to $62.50 area in the process.

Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may hold the price as strong support. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead.

WTI May Revert Back to the Mean

According to the daily chart, Oil broke above as the overall momentum is bullish. As per the current price action, if the price can have an impulsive daily bullish candle close above $64 to $64.50 area, the bulls may continue the bullish pressure towards $66 to $66.50 area as a first target. The second target will be $68 to $68.50 area if the price can break above $66 to $66.50 area in the coming days. Alternatively, if the price can have a bearish candle close below $64.50 to $64 area, the price may retrace downward towards $63 to $62.50 support area in the process.

Oil Broke Above

Image: Oil Daily Chart

In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price downside as a mean reversion. Along with this, the ADX line is currently residing below level 20, which indicates that the current bullish momentum is not so strong. So, there is a high chance that the price may revert back to the mean in the days ahead.

To conclude, as the overall momentum is still bullish, there is a high chance that WTI may continue the bullish trend further. An impulsive daily close is needed to identify the definite momentum in the coming days. 

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