Oil Bulls Retested $51.50 but could not Sustain Higher to settle and continue towards $53. As price rejected $51.50, further downward pressure may occur. Let’s check Oil Technical Analysis for more levels and insights.
February 13, 2020 | AtoZMarkets.com – Oil managed to push higher quite impulsively leading the price to retest $51.50 area again. Though the price has been quite impressive with the Bullish run but could not sustain the momentum above the area. As a result, the price is pushing lower again after rejecting the resistance at $51.50.
As Oil producers cut supply globally to meet the demand for having stable price, Oil price began to rise. Moreover, Coronavirus impact on Oil prices is fading though the demand has not recovered yet. The Organization of Petroleum Exporting Countries (OPEC) is trying to stabilize the Oil price since the Coronavirus impacted the market. As per current scenario, OPEC has been successful to keep the price above $50 per barrel.
Currently, Russia is still indecisive about the Supply cut which may affect the upcoming Oil price action in the market. If Russia does not go with the Supply cut flow, then the Oil price may struggle to keep the Bullish Pressure intact in the coming days. Additionally, Coronavirus impact on Oil price may sustain until any good solution is found and applied.
Oil Bulls Retested $51.50 and may Push Lower
Oil has been impulsive and non-volatile with the recent Bullish momentum after bouncing off from $50.50 area. The price did manage to break higher but could not sustain the Bullish pressure to continue.
image: Oil 1 Hour Chart
According to 1 hour chart, the price is currently correcting at the edge of $51.50. After the recent impulsive Bearish pressure pushing the Oil below $51.50 area, the Oil may head lower towards $50.50 again. Though the dynamic levels like 20 EMA, Tenkan and Kijun line is holding the price higher as support, but as per preceding trend it may break soon.
Moreover, MACD lines are above 0.00 level which is currently having a Bearish Crossover. Additionally, MACD histograms are also showing Bearish pressure as the Crossover happens. So, the price having consistent Bearish pressure in the coming hours, may lead the price lower again.
Oil is still Indecisive at the edge of $51.50
image: Oil Daily Chart
According to daily chart, the price did break and close above $51.50 area but still quite indecisive. Currently the price is showing Bearish pressure from the edge of $51.50 which may lead to certain downward move. The contradicting factor is the MACD lines having a Bullish Crossover below 0.00 level, which is indicating upward pressure.
As per preceding trend, the price has greater probability to push lower but certain correction may be seen along the way.
To conclude, Oil may correct at the edge of $51.50 while having greater probability to head towards $50.50 area again. As the price remains below $51.50, the Bearish bias may continue further.