Oil Dropped Below $65 Price Area – Bears to Regain Momentum?


Oil bears have regained momentum after rejecting $67 to $66.50 key resistance area. Oil dropped below $64 significant event area. Bears to regain momentum in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.

May 13, 2021, | AtoZ Markets – Oil declined today morning during the Asian session. Oil is currently trading around $64.50 price area and trying to push lower. After bouncing from the uptrend line, the bulls pushed the price higher impulsively, but failed to sustain the bullish pressure over $66.50 to $67 key resistance level. As per the current price action, the price may face strong support at the uptrend line again in the coming days.

Oil Dropped Below as the Key Level Worked as Strong Resistance

WTI is currently residing near $64.50 price area and trying to decline further. However, the price also broke below the Bollinger Bands’ middle band on the intraday chart.

Oil Dropped Below

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil dropped below and currently trading around $64.50 price area. As per the current scenario, if the price can break below the uptrend line with an impulsive bearish candle close, the bears may continue to push the price lower towards $63.30 to $63 price area in the process. On the other hand, if the price bounces higher from the uptrend line and has a daily bullish candle close above $64.50 to $65 price area, the bulls may regain momentum and push the price higher towards $66.50 to $67 price area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Bollinger Bands middle band. So, the dynamic level may work as strong resistance to push the price downside. Besides, the Bollinger Bands’ middle band may work as a confluence of the dynamic level in the process. However, the Bollinger Bands lower band may work as strong support to push the price upward in the days ahead.

WTI Bears May Continue Lower

According to the daily chart, Oil dropped below as the bears are optimistic. As per the current price action, if the price can have an impulsive daily bearish candle close below $65 to $64.50 price area, the bears may regain momentum and push the price down towards $63.30 to $63 price area as a first target. The second target will be $61 to $60.50 price area if the price can break below $63.30 to $63 price area in the process. On the contrary, if the price can break above $64.50 to $65 price area with a daily bullish candle, the bulls may push the price upside towards $66.50 to $67 price area in the coming days.

Oil Dropped Below

Image: Oil Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may work as strong support to push the price higher. However, the bears may regain momentum if the price can break below the dynamic level in the days ahead. Along with this, the MACD lines are currently residing above the o.oo level and may have a bearish crossover. Besides, the histograms are gradually sloping downside. Both indicate that the bears may regain momentum in the process.

To conclude, as long as the price residing over the dynamic level of 20 EMA, the bias will remain bullish. An impulsive daily close will help to identify the definite momentum in the coming days. 

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