Oil Found Support Around $60.50 Event Area – Will Strike Higher?


Oil bears have regained momentum after rejecting $64.00 to $64.50 resistance area. Oil found support around $60.50 psychological event area. Will the price strike higher 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.

April 22, 2021, | AtoZ Markets – Oil price rose today morning during the Asian session. Oil is currently trading around $61.25 area and trying to push higher.  After bouncing from $59.00 to $59.20 support level, the bulls pushed the price higher quite impulsively and hit March 2021’s high. As per the current price action, the price may face strong resistance at the dynamic level on the intraday chart in the coming days.

Oil Found Support as the Event Level Working Strongly

WTI is currently residing near $61.25 area and trying to climb upside. Moreover, the Bollinger Bands middle band is also holding the price as support on the daily chart.

Oil Found Support

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil found support and currently trading around $61.25 area. As per the current price action context, if the price can have an impulsive bullish candle close above the last candle’s high, the bulls may recover higher towards $62.00 to $62.20 area as a first target. The second target will be $64.00 to $64.50 key area if the price can break above $62.00 to $62.20 area in the coming days. Alternatively, if the price breaks below $60.80 to $60.50 area with an impulsive bearish candle, the bears may continue the bearish pressure towards $59.20 to $59.00 area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. However, the bulls may regain momentum if the price can break above the dynamic level in the coming days. Besides, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.

WTI Bulls May Regain Momentum

According to the daily chart, Oil found support as the bulls are still optimistic. As per the current scenario, if the price can have an impulsive daily bullish candle close above $60.50 to $60.80 support level, the bulls may push the price upside towards $64.00 to $64.50 area as a first target. The second target will be $67.50 to $68.00 key level if the price can break over $64.00 to $64.50 resistance area in the process.

Oil Found Support

Image: Oil Daily Chart

Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Bollinger Bands middle band. So, the dynamic level of 20 EMA may act as a strong support to push the price upward. Besides, the Bollinger Bands middle band may work as a confluence of the dynamic level in the days ahead. However, the Bollinger Bands’ upper band may work as strong resistance in the days ahead.

To conclude, the price has successfully retraced towards the dynamic level after an impulsive bullish momentum. A daily close is needed to identify the definite momentum in the coming days.  

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