Crude oil price corrects lower and may continue the Bullish run in the coming events. After retracing from the $45 support, the price is now able to move higher. Let’s check the technical analysis for more levels and insights.
March 4, 2020 | AtoZ Markets – The price of Oil surged after facing support at the $43.50 key area. The price retraced near $45 area and trying to move upward. If the price is able to take over $48.50 highs, the Bullish pressure may continue further upward in the coming events.
Crude Oil Price Fundamental Highlights
Oil price rose more than 1% today as OPEC and its allies OPEC+ moving towards deeper cut on the Oil output. OPEC+ closer to its deeper cut agreement to pass aimed to recoup slump in the crisis caused by Coronavirus. The Organizations of Petroleum Exporting Countries (OPEC) and its allies, recommended that extra 1 million barrels Oil output should be cut per day. That’s means that Saudi and Russia are close to a deal to support the Oil market.
On the other hand, Barclays Analysts said, “Uncertainty over the range of demand decay arising from the virus outbreak, and the unclear timing of recovery in Libyan output would influence the OPEC+ decision.” They are also added, “This is no time for caution for OPEC+, Second-quarter oversupply needed some heavy lifting from the group to offset even before the Coronavirus outbreak, but now it is a must.”
Oil Corrects Lower But May Continue the Bullish Run Towards $50.50
Oil retrace $45 support area and trying to continue the Bullish run. Currently, the price is becoming corrective and volatile after correcting lower. If Bulls can break above $48.50 area, the Bullish run may continue higher towards $50.50 soon.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price of Oil is now residing near $47.80 area and trying to continue the Bullish pressure. But the momentum is very volatile to sustain further. If Bulls take over this volatile phase, the Bullish pressure may maintain further towards $50.50 in the coming days.
Moreover, the dynamic levels of 20 EMA is residing below the current price, along with the Kijun line and the Tenkan line. The dynamic level of 20 EMA may work as strong support, and the Kijun line and the Tenkan may also work as a confluence of the dynamic level 20 EMA. On the other hand, the MACD histogram volumes are residing above the 0.00 level, which is a good sign that Bulls may continue the pressure.
Oil Retracing Higher may Continue the Bearish Trend
According to the Daily chart, Oil is now residing near $47.80 and trying to spike. After rejecting the $43.50 key support area, Oil was able to have a daily close above $45 with an engulfing bar. Oil may retrace higher towards $50.50 in the coming days. If the price is able to retrace higher towards $50.50 resistance area, the bearish trend may continue further with the target of $45 again.
Image: Oil Daily Chart
Moreover, the dynamic levels of 20 EMA is residing above the current price, along with the Kijun line and the Tenkan line. It may pull the price higher toward the $50.50 resistance area as a Mean Reversion. The MACD lines are also moving higher and may create a Bullish divergence in the coming events.
To conclude, Oil may continue to push higher toward the $50.50 area. If Oil price is able to retrace towards the $50.50 area, the Bearish trend may continue further toward the $45 area again.