Oil correction continues below $32.30 area may sustain further. After a failed attempt to fill up the Bearish gap, Oil decline lower towards $31.10 area. Let’s check Oil Technical Analysis for more levels and insights.
March 13, 2020 | AtoZ Markets – Oil price remains below $32.30 area after rejecting $36.30. The price of Oil failed to recover higher to fill up the gap and got rejected by the dynamic level of 20 EMA. As per the current price action, Oil needs to break off its corrective phase before any definite move is observed.
Oil price fall for a consistent third day, after Brent crude Oil’s most significant drop, took place this week. Brent Oil repeat its history of falling off 1991. The United States crude is also heading towards its worst week since 2008, as a concern of declining demand from the Coronavirus outbreak.
Recently, Venezuela called a meeting with OPEC and Russia about the current Oil price decline. Venezuela took the step to reach out to its partners to come forward to set a new decision between OPEC and non-OPEC nations. Though it might not have a substantial impact on the current situation but it may show some hope to the Oil Bulls in the process.
Oil Correction Continues may Sustain Further
Oil is now trading near $31.20 area and trying to push higher as the Correction continues. The price became very corrective and volatile after Oil broke below $32 area. The Bearish gap is yet to get filled by the Bulls to enforce further up move in the process.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price of Oil is now residing near $31.20 area after a 4-hour Bearish close below $32. Oil is now in a corrective and volatile situation because of the current global uncertainty. As per the current scenario, the price needs to break the Correction phase it is currently in to make way for definite trend momentum in the coming days. As Oil Correction Continues, the market is indecisive until a break above or below the corrective phase is observed.
Moreover, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line and the Tenkan line. If the price breaks above the dynamic levels which are acting as Resistance now, Oil may recover higher. Or else, if the price rejects from the dynamic levels Resistance, Oil may decline further.
Oil Bounced from $27.50 may Recover Higher?
According to the Daily Chart, Oil is now trading at $31.20 area after the price rejected $27.50 support. The price did fail to break above $35 resistance area, which is an indication of intense Bearish pressure in the market.
Image: Oil Daily Chart
On the other hand, the dynamic level of 20 EMA is residing above the current price, which may pull the price higher as Mean Reversion. The Kijun line and the Tenkan may also work as a confluence to the 20 EMA. Besides, the RSI indicator line residing below 30 level is in an oversold position. As per the dynamic levels and RSI indicator, there is a high chance of Bulls to take over the market but as per current COVID 19 issue, it is still indecisive.
To conclude, Oil is currently corrective and may push higher as Retracement. Though Bulls are currently trying to push the price higher, the Bias is still Bearish.