Oil sustained the bullish momentum above $40 area with a weekly close. Oil climbed above $45.50 area as bulls are optimistic about recovering further. Bulls to reach February’s high? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
July 6, 2020, | AtoZ Markets – Oil is currently trading around $40.95 area and trying to climb further. WTI found support on the dynamic level of 20 EMA and strike higher, according to the intraday chart. As per the current price action, Oil may face resistance around $41.50 area in the coming days.
Oil price rose today during the Asian session as supply secured by the OPEC and Russia. Furthermore, Oil supply cut extended by 9.7 million barrels per day for a third month in July. After that, the OPEC and its allies thinking to extend the production cut by 7.7 million barrels per day until December.
Oil Climbed Higher as OPEC and Its Allies Extended Production Cut
WTI is currently residing near $40.95 area and trying to push higher. Moreover, the price failed to break below the dynamic level after rejecting $40.50 area last week.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil climbed above $40.50 resistance level and currently trading around $40.95 area. As per the current price action, the bulls may push the price higher towards $41.50 area. So, if the price reaches $41.50 area and rejects, the bears may regain momentum and push the price downward towards $40.50 area.
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 act as strong support, as before to push the price upside. The Kijun line and the Tenkan line may work as a confluence of the dynamic level.
WTI to Sustain the Bullish Bias Further?
According to the daily chart, Oil sustained above the dynamic level of 20 EMA and currently residing near $40.95 area. As per the current scenario, if the price can break above $41.50 area with an impulsive daily bullish close, the bulls may recover higher towards $45 in the coming days. Alternatively, if the price rejects $41.40 area with a bearish close, the bears may regain momentum and push the price downside towards $40 area again.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing far below from the price. It may pull the price down back to the Mean. Besides, the RSI line is currently residing below the overbought level 80 and gradually sloping down. It indicates that bears may regain momentum in the days ahead.
To conclude, Oil has gained a good amount of pips in this Coronavirus pandemic second wave crisis. A daily close will help to identify the definite momentum in the coming days.