Oil Holding the Bearish Momentum Below $73 Price Area – Will Continue Lower?


Oil has become impulsive and non-volatile after rejecting $75.50 to $75 resistance area. Oil is holding the bearish momentum below $73 significant price area. Will the price continue further lower 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.

July 15, 2021, | AtoZ Markets – Oil price dropped today morning during the Asian session against the U.S. Dollar. After breaking over $72.50 to $73 price area, the bulls pushed the price upside quite impulsively and reached $75 to $75.50 price area. However, the bulls failed to sustain the bullish pressure over $75 to $75.50 price area and declined. Oil is currently trading around $71.83 price area and trying to push downside. As per the current price action, the price may face strong support around $71 to $70.50 price area in the coming days.

Oil Holding the Bearish Momentum As the U.S. Fuel Inventories Spiked

Oil is currently trading around $71.83 price area and trying to continue lower. However, the price also broke below the dynamic level of 20 EMA on the daily chart.

Oil Holding

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil is holding the bearish momentum and currently trading around $71.83 price area. As per the current price action, if the price can have an impulsive bearish candle close below $73 to $72.50 price area, the bears may push the price down towards $71 to $70.50 price area in the coming days. So, if the price reached $71 to $70.50 price area and bounced higher with a bullish candle, the bulls may regain momentum and push the price upside towards $72.50 to $73 price area in the days ahead.

In addition, the dynamic level of 20 EMA is currently residing above the price, which may pull the price upward as a mean reversion. Along with this, the Stochastic Oscillator lines are currently residing below the oversold level 20 and may have a bullish crossover. It indicates that the bulls may regain momentum in the process.

WTI May Continue Lower

According to the daily chart, Oil is holding the bearish momentum as the bears are still optimistic. As per the current scenario, if the price can have an impulsive daily bearish candle close below $73 to $72.50 price area, the bears may push the price downside towards $71 to $70.50 price area as a first target. The second target will be $68 to $67 price area if the price can break below $71 to $70.50 support level in the coming days.

Oil Holding

Image: Oil Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price down. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.

To conclude, as the price had an impulsive daily bearish candle close after rejecting $75.50 to $75 price area, there is a high chance that Oil may continue the bearish momentum further in the coming days. 

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