Oil Finally pushed Higher above $50.50 recently which can lead the price towards $51.50 area. Despite strong Bearish bias, certain correction is in making. Let’s check Oil Technical Analysis for more levels and insights.
February 12, 2020 | AtoZMarkets.com – Oil is currently residing above $50.50 area after having consistent Bullish pressure since it bounced from $49.40 area. Though the price has recently broke above an important price level like $50.50 area but the Bearish Pressure may still continue further in the coming days.
As Coronavirus cases started to decline in China, Oil managed to gain certain momentum. According to reports, the numbers of people getting infected by Coronavirus is declining. It is currently the lowest since January 30, 2020. Though the red alert situation is still sustained but things are getting a bit better along the way.
Moreover, the demand of Oil may increase again though the global supply cut is still in the making. Oil is already down by 20% and OPEC is trying to balance the supply and demand to sustain a stable price. Russia is still hesitant to cut Oil supply while Saudi Arabia wants global oil suppliers to cut supplies quickly.
Oil may Sustain the Climb higher?
Oil is currently pushing higher creating a new higher low since it bounced off the $49.40 area with a daily close. The price turned a bit volatile at the edge of $50 while having strong Bearish pressure along the way.
image – Oil 1 Hour chart
Oil is currently residing above $50.50 while also breaking above the Kumo Cloud. The dynamic levels like 20 EMA, Tenkan and Kijun lines are below the price line which may support further upward carry in the process. Additionally, Chikou Span breaking above the candle resistance added to the confluence.
After the recent Higher low formation, the price formed certain Inverted Head and Shoulder Pattern which have Neckline at $50.50. As the Neckline is broken currently, there are chances of price reaching $51.50 area as per Measured Objective. Moreover, MACD showing no sign of Bearish Divergence may attract more Bulls to support the current climb higher.
Oil Finally Pushing Higher But as a Retracement
image: Oil Daily chart
According to daily chart, recent volatility and correction at the edge of $50 area has introduced certain Bullish pressure. The price is currently pushing higher while managing to remain above $50 area currently. Though Oil Finally pushed Higher and Bulls might show certain upward thrust in the coming days. As the price push higher, it may reach $53 at best as Retracement before continuing the Bearish pressure again in the future.
To conclude, Oil is currently retracing higher towards $51.50 area which might reach $53 as well. As the Bias is still Bearish, the Down trend may continue further after certain Retracement.