Oil continued its bullish trend over $66.50 to $67 price area and reached at 0ctober 2018’s high. Oil faced resistance around $70.50 key price 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.
June 10, 2021, | AtoZ Markets – Oil price declined today morning during the Asian session against the U.S. Dollar. Oil prices dropped on Thursday as the stock data in the U.S., the world’s top Oil buyer, showed a climb in gasoline stocks that demonstrated more fragile than-anticipated fuel demand toward the beginning of summer, the nation’s peak time for motoring. WTI is currently trading around $70 price area and trying to recover higher. As per the current price action, the price may retrace downside towards the dynamic level on the daily chart in the coming days.
Oil Faced Resistance as the Demand Fall
WTI is currently residing near $70 price area and trying to climb upside. However, the price bounced higher from the dynamic level of 20 EMA on the intraday chart.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil faced resistance and currently trading around $70 price area. As per the current price action context, if the price can break below the last bullish candle’s low with an impulsive bearish candle, the bears may regain momentum and push the price downward towards $67 to $66.50 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. So, the bears may regain momentum if the price can break below the dynamic level in the process. Along with this, the MACD lines are currently residing above the 0.00 level and gradually sloping downside. Besides, the histogram has created a bearish divergence. Both indicate that the bears may regain momentum in the days ahead.
WTI May Revert Back to the Mean
According to the daily chart, Oil faced resistance as the price requires a downside retracement. As per the current scenario, the price may retrace down towards $67 to $66.50 support level in the process. So, if the price retraced towards $66.50 to $67 support area and bounced higher with an impulsive daily bullish candle, the bulls may sustain the bullish trend towards $70.50 to $71 price area as a first target. The second target will be $74 to $75 key area if the price can break above $70.50 to $71 resistance area in the coming days.
Image: Oil Daily Chart
Moreover, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may pull the price downside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
To conclude, after an impulsive bullish momentum, the price requires a downside retracement. As the overall bias is still bullish, there is a high chance that the bulls may sustain the bullish trend further after a downward retracement in the coming days.