Oil sustained its bullish momentum and broke above $66.50 to $67 significant resistance area. Oil bullish bias continues over $67 price area as the investors are optimistic. WTI to continue further upward 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.
June 3, 2021, | AtoZ Markets – Oil price rose today morning during the Asian session against the U.S. Dollar. After breaking above $66.50 to $67 resistance level, the bulls pushed the price higher impulsively and reached October 2018’s highest pick. WTI is currently trading around $68.60 price area and trying to push lower. As per the current price action, the price may retrace downside towards the dynamic level of 20 EMA on the daily chart in the coming days.
Oil Bullish Bias Continues as the Global Demand Surged
WTI is currently residing near $68.60 price area and trying to push downward. However, the price is still residing over the Bollinger Bands middle band on the intraday chart.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil bullish bias continues and currently trading around $68.60 price area. As per the current price action, if the price can have an impulsive bearish candle close below the last candle’s low, the bears may push the price downward towards $67 to $66.50 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level may act as a strong support to push the price upside. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the process. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead.
WTI May Revert Back to the Mean
According to the daily chart, Oil bullish bias may continue further higher. As per the current scenario, the price may retrace downside towards $67 to $66.50 support level in the coming days. So, if the price retraced towards $67 to $66.50 support area and bounced higher with an impulsive daily bullish candle, the bulls may sustain the bullish trend towards $69 to $69.50 area as a first target. The second target will be $71.50 to $72 price area if the price can break above $69 to $69.50 area in the days ahead.
Image: Oil Daily Chart
Moreover, 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 Stochastic Oscillator lines are currently residing above the overbought level 80 and may have a bearish crossover. It indicates that the price may retrace downside at least towards the dynamic level in the process.
To conclude, after an impulsive bullish momentum, the price requires a downward retracement. As the overall bias is still bullish, there is a high chance that WTI may continue further higher after a downward retracement in the coming days.