Oil price correction at the edge of $58.00 may push higher before pushing lower towards $55.00 support area. Certain upward pressure expected. Check today’s Oil Technical Analysis for more insights.
January 15, 2020 | AtoZMarkets.com – Oil has been bearish since the price rejected off the 65.50 price area. It has been quite impulsive with the momentum and expected to push towards $55.00 area. According to our last analysis, Oil to lose further momentum?
According to reports, U.S. is more likely to keep the tariffs on Chinese goods unchanged until Presidential Election on November 2020. It may impact the oil price negatively in the future. Oil did climb higher when U.S. striked Iranian General but as the time passed it normalized. Currently, both U.S. and Iran declared that they do not want any war which resulted in further drop of oil price.
Oil Technical Analysis – January 15, 2020
The price has been quite slow with the bearish pressure recently. Despite the fact that the price rejected off the $65.50 area with a impulsive bearish pressure. There has been certain slowdown observed after the impulsive pressure which does indicate the strength of bears in the process. Though the dynamic levels like 20 EMA, Tenkan and Kijun line is sloping downward, but certain retrace higher towards $55.50-80 may occur soon as the oil correcting at the edge of $58.00 area.
Read more: Oil to lose further momentum?
image: Oil (WTI) 4 Hour Chart
As the price progressed lower, Bullish Divergence spotted in the 4 hour chart. The price started to struggle while pushing lower from $60.00 to $58.00 area and MACD Histogram squeezed higher. As the oil correcting at the edge of $58.00 support area persists, the chance of pushing higher as retracement towards $58.50-80 expected.
As of Ichimoku Perspective, Tenkan line is currently quite agressive showing downward slope and Kijun line near 20 EMA may act as resistance. The Chikou Span is nearing the price line which indicates an imminent upward momentum in the making. Whereas, the Kumo Cloud is getting thicker as resistance.
Oil Price Correction at the edge of 58.00 in Daily Chart
image: Oil (WTI) Daily Chart
Yesterday the price closed with an indecision candle having small bullish body. Though the bias is still bearish but certain retrace towards 20 EMA i.e. 58.50-80 area expected. The Chikou Span has already broken below the price line but 20 EMA may act as support for the green line. Though the price is still quite indecisive but as per recent price action while MACD lines finding support at 0 level, certain upward pressure as retracement is highly probable.
So, curently the price has high probability to push higher despite the bearish bias in place. The market is in the correcting phase on lower timeframes and as the profit taking of bears starts, bulls may intervene in the process.
To Conclude, certain upward pressure towards $58.50-80 area is expected before the bearish trend continues.