Oil price jumped higher and closed above $13 area yesterday during the New York session. Oil found support at $10 area, can WTI recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
April 29, 2020, | AtoZ Markets – Oil is currently trading around $13.50 area and trying to climb higher. After the price found support at $10 area, WTI push higher and close with a daily bullish pin bar. As per the current scenario, Oil may recover further but may need to retrace 50 per cent of the daily pin bar in the days ahead.
Oil Found Support at $10 – Is It Equilibrium?
Oil strike higher after losing more than a quarter of its worth from starting of this week with volatility. Moreover, the U.S. West Texas Intermediate crude futures jumped by 15.4% or $1.90 at $14.24 per barrel. Besides, Brent crude futures up by 4.6% or 93 cents to $21.39 per barrel, which added 2.3% gain on yesterday.
Besides, the U.S. crude inventories rose by 10 million barrels to 510 million barrels on April 24, according to the industry group American Petroleum Institute on Tuesday. Furthermore, Lachlan Shaw, Head of Commodity Research, at National Australia Bank said, “It’s a little bit of good news that maybe storages aren’t filling up quite as quickly in the U.S. as you would have thought.”
He also added, “The other thing coming through is more detail and a louder groundswell towards plans for removing COVID restrictions. Particularly in Europe – in countries like Spain, France, Austria and Switzerland. That’s going to see demand pick up.”
On the other hand, the U.S. Energy Information Administration going to releases weekly data later on Wednesday. Besides, while storage is rapidly filling up, U.S. shale producers production cut, which is estimated by consultants Rystad Energy at 300,000 barrels per day for May and June, should help slow overflows into tanks.
WTI Bulls Are Still Optimistic
According to the daily chart, WTI is currently residing near $13.50 after Oil found support at $10 area. As per the current price action, if the price can have a daily bullish close above the pin bar, the bulls may push the price higher towards $20 in the coming days.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which may pull the price back to its Mean. In addition, the MACD lines are currently residing below 0.00 level and gradually rising upward, which indicates bulls are gaining momentum.
To conclude, Oil has been quite volatile and indecisive over the week. But investors are still hopeful after seeing that Oil found support at $10. WTI may climb higher but needed an impulsive daily close above $16 area in the days ahead.