Crude oil price has become impulsive and non-volatile as OPEC+ agreed to cut output further. At the time of writing, oil has broken above $42.50 psychological resistance level. What next can traders expect? Read more to find further insights into today’s WTI Technical Analysis.
August 18, 2020, | AtoZ Markets – Crude oil price is currently trading around $42.70 area and trying to recover higher. The price also 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 key area in the coming days.
Crude oil price is a little bit volatile today. However, they generally clutched into overnight gains after OPEC+ said the producer gathering is completely agreeing with output cuts to support prices, in a fall in demand for Oil due to the COVID-19 pandemic. Moreover, the Organization of the Petroleum Exporting Countries (OPEC) and allies were known as OPEC+ in August, marked down their agreed cuts to 7.7 million barrels for each day (BPD) from 9.7 million BPD beforehand as values fired up in previous months.
Crude Oil Price Broke Above as the OPEC+ Agreed on Output Cuts
WTI is currently residing near $42.70 area and trying to climb higher. The price also broke above the Kijun line and the Tenkan line on the intraday chart, after bouncing from the Kumo cloud.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil broke above and currently trading around $42.70 area. As per the current price action, if the price can have a bullish 4-hour candle close above $42.50 area, the bulls may recover higher towards $43.50 area in the coming days. Alternatively, if the price breaks below $42.50 support area with an impulsive bearish candle close, the bears may regain momentum and decline towards $42.50 area in the days ahead.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may work as strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level. Also, the Kumo cloud is currently residing below the price, which may carry the price as a support in the process.
WTI Technical Analysis – Bulls Are Optimistic
According to the daily chart, Oil broke above and currently residing near $42.70 area. As per the current price action, if the price can break above $43.50 resistance area with an impulsive daily bullish candle close, the bulls may push the price upward towards $48 key level in the coming days. In contrast, if the price rejects $43.50 area, the bears may decline towards $42.50 area again in the days ahead.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may carry the price upside. Besides, the MACD lines are currently residing above 0.00 level and may have a bullish intersection. It indicates that bulls are still holding the bullish bias may strike higher.
To conclude this WTI Technical Analysis, as the travel industries are opening slowly and Coronavirus restrictions are easing in some countries. There is a high chance that Oil price may recover further in the coming days.