Oil has become volatile and indecisive but still maintain above $41 psychological area. Oil price declined as the relation between the U.S., and China turns worse. Will WTI decline further? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
July 27, 2020, | AtoZ Markets – Oil is currently trading around $41.15 area and trying to bounce higher from $41 support. After giving a false bullish breakout above $42 area, WTI price dropped impulsively below $41.50 area. As per the current scenario, WTI needs to break the daily indecision bar in the coming days.
Oil price acuminated downside on Monday as increasing Coronavirus pandemic cases. Moreover, tensions between the United States and China pushed investors toward other safe-haven assets. However, Oil price declined reflected moves in more extensive financial markets in Asia in the midst of worries about heightening tensions between the world’s two greatest economies following the terminations of consulates in Houston and Chengdu. Worldwide coronavirus cases, in the meantime, surpassed 16 million.
Oil Price Declined as Coronavirus Pandemic Cases Surge Higher Again
Oil is currently residing near $41.15 area and trying to decline. In addition, the price broke below the dynamic level of 20 EMA on the intraday chart.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil price declined but still residing above $41 area. As per the current price action, if the price breaks below $41 area with an impulsive bearish candle, the bears may sustain the bearish pressure towards $40 area in the days ahead. Alternatively, if the price bounced higher from $41 area and had a 4-hour close above $41.50 area, the bulls may regain momentum and climb higher towards $43 area.
In addition, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. The dynamic level may act as strong resistance to push the price downside. The Kijun line and the Tenkan may work as a confluence of the dynamic level. Besides, the price still residing above the Kumo cloud, which may act as strong support as well.
WTI Bulls Are Still Optimistic
According to the daily chart, Oil is currently residing near $41.15 area and trying to push lower. As per the current price action, the price has created a bullish indecision bar above $41 area, which needs to be broken. So, if the price can have a daily close below $40.70 area, which is indecision bar’s low, the bears may push downside towards $39 area in the coming days. In contrast, if the price can break above the indecision bar’s high and closes above $41.60 area, the bulls may sustain the bullish trend towards $45 area in the coming days.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price, which may act as strong support in the process. Besides, the MACD lines are currently residing above the 0.00 level, which indicates that bulls are still present in the market.
To conclude, after recovering fifty percent of the recent bearish trend, Oil price has become indecisive. A daily close is required above or below the indecision bar to find the definite momentum in the coming days.