Oil price rose today during the Asian session with hopes of a further production cut. Oil managed to climb above $16, can WTI recover again? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
April 24, 2020 | AtoZ Markets – WTI is currently trading around $17.30 area and trying to recover higher. After a historical price drop, Oil managed to climb higher with a big bullish gap. As per the current scenario, Oil may face resistance at $20 area before the price climb further higher in the coming days.
Oil Managed to Climb as Kuwait Move to Output Cut
Oil price strike higher again, after producer like Kuwait said they would move to an output cut. If the United States approved another stimulus package to emulate with the economic crisis, caused by the COVID-19 pandemic. But except a sharp climb later in the session, WTI price is heading for their eighth weekly loss in the last nine, covering one of the storms weeks in the history of Oil market. Furthermore, Brent Oil dropped 20% this week, and U.S. West Texas Intermediate fell more than 3%. Besides, WTI fell for the first time in history to minus $37.63 a barrel on Monday, while Brent thudded to a two-decade low.
Moreover, ING said in a statement, “There is little in the way of fundamental developments to support the move higher, although given the amount of weakness recently, we were due a relief rally.”
Along with, the Organization of the Petroleum Exporting Countries (OPEC) and its allies including Russia, a group known as OPEC+, output cut of 9.7 million barrel per day are remaining to hoof in from May. On the other hand, Kuwait’s state news agency KUNA said on Thursdays, “The OPEC producer will begin cutting supplies to international markets without waiting for the official start of the deal.”
Can WTi Recover Further Higher in the Process?
According to the Daily chart, WTI is currently trading around $17.30 area, after Oil managed to climb above $16. Oil price dropped to minus figure from $20 area in just one trading session. As per the current price action, if Oil managed to climb above $20 area with and daily close, the bulls may push the price higher towards $36 area. Alternatively, if the price remains below $20 with an impulsive bearish close, the bears may push the price down again to $1.
Image: Oil Daily Chart
Moreover, the price broke above the Kijun line and Tenklan line, which is a good sign of further bullish pressure. Besides, the MACD lines are residing below 0.00 level and created a bullish divergence. It indicates that bulls are gaining momentum may strike higher.
To conclude, Oil market dive into uncertainty after a historical drawdown. Oil price may recover further, but as long as the Coronavirus effect remains unsolved, WTI price may face further indecision.