Oil price has become indecisive and facing strong resistance around $43 area. Oil extremely volatile below $43 psychological area. Can Bulls Regain Momentum? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
August 25, 2020, | AtoZ Markets - Oil is currently trading around $42.50 area and quite indecisive. However, the price of Oil has attempted several times to break above $43 psychological area but rejected. As per the current price action, the price may find support on the dynamic level of 20 EMA in the coming days.
Crude oil prices were blended on Tuesday as investors weighed huge supply cuts in the U.S. Gulf Coast from Tropical Storms Marco and Laura against increasing coronavirus cases in Asia and Europe. Moreover, energy organizations moved to cut supply at U.S. Gulf Coast petroleum refineries on Monday in the wake of closing 82% of the zone's offshore crude oil output as the uncommon twofold storm attack on key U.S. Oil territories intimidated to get days of massive rains and strong winds this week. Therefore, producers have closed more than 1.5 million barrels for every day of Gulf Coast offshore oil supply, about 14% of the country's complete yield.
Oil Extremely Volatile as the Coronavirus Cases Increased Again
WTI is currently residing near $42.50 area and trying to recover higher. In addition, the price found support on the Kijun line and the Tenkan line on the intraday chart.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil has become extremely volatile and currently trading around $42.50 area. As per the current price action, if the price can break above $43 area with an impulsive bullish candle close, the bulls may recover higher towards $45 area in the coming days. Alternatively, if the price rejects $43 area again with an impulsive bearish candle close, the bears may regain momentum and push the price downside towards $41 area in the process.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong support to push the price upside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level.
WTI Bulls Are Still Optimistic
According to the daily chart, Oil extremely volatile, but the dynamic level of 20 is holding the price as support. As per the current price action, if the price can break above $43 area with an impulsive bullish candle close, the bulls may push the price upside towards $45 area in the coming days.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may carry the price as support and help Oil to break above. Besides, the MACD lines are currently residing above 0.00 level and may have bullish cross over. It indicates that bulls are still optimistic may strike higher.
To conclude, Oil trying to hold the bullish bias above the dynamic level from an extended period. A daily close with an impulsive candle is required to identify the definite momentum in the coming days.