Oil sustains its bullish trend over $70.50 to $71 price area and hit a multi-year high of $73 key area. Oil climbed over $72 significant price level. The Bulls to continue the bullish trend 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.
June 17, 2021, | AtoZ Markets – Oil price rose today during the London session against the U.S. Dollar. After breaking over $70.50 to $71 psychological resistance level, the bulls pushed the price upside quite impulsively and hit October 2018’s high. However, the bulls failed to continue the bullish trend above $72.50 to $73 price area. Oil is currently trading around $71.90 price area and trying to push downside. As per the current price action, the price may face strong support at the dynamic level of 20 EMA on the intraday chart in the coming days.
Oil Climbed Over as the Overall Trend Is Still Bullish
WTI is currently residing near $71.90 price area and trying to push lower. However, the price had an impulsive daily bearish candle close after rejecting $73 to $72.50 price area.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil climbed over and currently trading around $71.90 price area. As per the current price action, if the price can break below the dynamic level of 20 EMA with an impulsive bearish candle, the bears may push the price down towards $71 to $70.50 price area in the coming days. On the contrary, if the price bounced higher from the dynamic level with an impulsive bullish candle and breaks above $72.50 to $73 resistance area, the price may recover higher towards $74.50 to $75 price area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price upside. Moreover, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish crossover. It indicates that the price may decline towards $71 to $70.50 price area in the days ahead.
WTI May Revert Back to the Mean
According to the daily chart, Oil climbed over as the bulls are optimistic. As per the current scenario, the price may retrace downside towards $70 to $69.50 support area in the process. So, if the price retraced towards $70 to $69.50 support area and bounced higher with an impulsive daily bullish candle, the bulls may continue the bullish trend towards $72.50 to $73 price area as a first target. The second target will be $74.50 to $75 key area if the price can break above $72.50 to $73 resistance level in the coming days.
Image: Oil Daily Chart
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 pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an impulsive bullish momentum, the price requires a downside retracement. As the overall trend is still bullish, there is a high chance that the bulls may continue further higher in the coming days.