Oil Holding the Bullish Bias Over $65 Price Area – Will Climb Further?


Oil bulls have regained momentum after bouncing from $63 to $63.20 support level. Oil is holding the bullish bias over $65 price area. Will WTI climb further 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.

May 6, 2021, | AtoZ MarketsOil price fall today morning during the Asian session. Oil is currently trading around $65 price area and trying to push lower. After bouncing from $63 to $63.20 support level, the bulls pushed the price higher quite impulsive and hit $66.70 to $67 key resistance area. As per the current price action context, the price may revert back to the mean on the daily chart in the coming days.

Oil Holding the Bullish Bias as the Bulls Are Still Optimistic

WTI is currently residing near $65 price area and trying to decline further. However, the price broke below the dynamic level of 20 EMA on the intraday chart.

Oil Holding the Bullish

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil is holding the bullish bias and currently trading around $65 price area. As per the current price action, if the price can have an impulsive bearish candle close below $65.50 to $65 price area, the bears may push the price down towards $64.20 to $64 support area in the process. On the contrary, if the price bounced upside from $65 to $65.50 area with an impulsive bullish candle close, the bulls may regain momentum and recover higher towards $66.70 $67 key area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing near the price. Along with the Bollinger Bands middle band. So, the bulls may regain momentum if the price can have an impulsive bullish candle above it. On the other hand, the bears may continue further lower if the price can have an impulsive bearish candle under it.

WTI May Retrace Downside

According to the daily chart, Oil is holding the bullish bias and currently residing near $65 price area. As per the current scenario, the price may retrace downside towards $64.20 to $64 support area in the process. So, if the price retraced towards $64.20 to $64 price area and bounced higher with an impulsive daily bullish candle, the bulls may regain momentum and continue the bullish trend further towards $67.50 to $68 key area in the coming days.

Oil Holding the Bullish

Image: Oil Daily Chart

Furthermore, the dynamic level of 20 EMA is currently residing below the price. So, it may pull the price down as a mean reversion. Along with this, the Stochastic Oscillator lines are currently residing above the overbought level 80 and had a bearish crossover. It indicates that the price may decline further lower in the days ahead.

To conclude, as long as the price residing over the dynamic level of 20 EMA on the daily chart, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days. 

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