Oil failed to break above $40 area and aggressively pushed the price down. Oil dropped below $38 area as new Coronavirus pandemic wave Threaten the global demand again. WTI to decline further? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
June 29, 2020, | AtoZ Markets – Oil is currently trading around $37.90 area and trying to push down. The price also broke below the dynamic level of 20 EMA on the daily chart. As per the current price action, WTI may face support around $37 area in the coming days.
Oil dropped below $38 area today during the Asian session by extending last week’s losses. Moreover, investors are worried about the global demand may nose dive again after Coronavirus cases surge to ten million with the deaths over half a million till today, according to the Johns Hopkins University’s report.
Oil Dropped Lower as Investors Worried About the Second Wave
WTI is currency residing near $37.90 area and trying to decline further. In addition, the price climbed above $40 area and reached towards $41.50, but the bulls failed to hold the price and dropped below $40 area again.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil is currently residing near $37.90 area and trying to retrace higher. Oil dropped below the dynamic level of 20 EMA and may now retrace toward it before sustaining the bearish pressure. As per the current price action, if the price retraces towards the dynamic level and has a 4-hour close below it, the bears may continue to decline towards $37 area. Alternatively, if the price breaks above the dynamic level, the bulls may push the price higher towards $39 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may act as strong resistance and push the price down. Besides, the MACD lines are residing below 0.00 level and may have a bullish intersection. It indicates bulls may take charge for a while in the days ahead. Also, the histogram has created a bullish divergence, which is also a sign of bullish pressure.
WTI May Decline Further
According to the daily chart, WTI is currently residing near $37.90 area and trying to push downward. As per the current price action, if the price reaches $37 area and bounces higher, the bulls may recover higher towards $40 area again. In contrary, if WTI breaks below $37 area with a daily close, the bears may sustain the bearish momentum towards $35 area in the coming days.
Image: Oil Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing above the price, which may act as strong resistance in the process. Besides, the RSI line is currently residing below level 60 and gradually sloping down. It indicates bulls are losing momentum slowly.
To conclude, Oil dropped below $38 area indicates that this may end of a long term bullish trend. A daily close is required to identify the definite momentum in the days ahead.