Oil price has been quite volatile and indecisive and may require further cut to stabilize the market. Oil to decline further as OPEC hinted output cut? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
April 17, 2020 | AtoZ Markets – Oil is currently trading around $19.60 and trying to decline further. WTI daily close below $20 may indicating further downward pressure may occur in the coming days. As per the current scenario, the Oil market may need some potential news to move the price higher in the future.
Oil to Decline Further Because of COVID-19 Crisis
Oil price has been quite indecisive during the Asian session today as Russia and Saudi Arabia hinted a further production cut. Moreover, Saudi Arabia and Russia said overnight that, they are open to cut output further as they agree to cut 10 million barrel earlier in April. Besides, Russian Energy Minister Alexander Novak and Prince Abdulaziz bin Salman said in a joint statement, “They will continue to monitor the Oil market closely and are prepared to take further measures jointly with OPEC+ and other producers if these are deemed necessary.”
WTI Price Is Indecisive – May Require Further Output Cut
WTI is currently residing around $19.60 area and consolidating between the price range of $15 to $20. Oil price has seen a historic downfall amid the Coronavirus pandemic, which has damaged the industry extremely.
Image: Oil 4 Hour Chart
According to the 4-hour chart, WTI price is currently residing near $19.60 area and Oil may decline further. The price pushed higher but failed to break above, and rejected from $20 area. As per the current price action, if the price can have an impulsive 4-hour close below $19 area, the bears may push the price lower towards $15 area. Alternatively, if the bulls can break above $20 area with an impulsive close, the bullish momentum may sustain higher towards $27.50 in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may act as a strong resistance and push the price down. In contrast, if the price can break above the dynamic level, there is a high chance that bulls may recover higher. Besides, the MACD lines were residing below 0.00 level and had a bullish cross over, which indicating bulls may gain momentum soon.
To conclude, Oil has been struggling since the COVID-19 hit the world economy, mostly the travel industry. WTI may require a further output cut to find definite momentum in the coming days.