Oil bears have regained momentum after rejecting $75 to $74.50 price area. Oil price dropped below $73 significant support level. Will the price decline further downside 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 8, 2021, | AtoZ Markets - Oil price fall today morning during the Asian session against the U.S. Dollar. After bouncing from $72.50 to $73 support level, the bulls have regained momentum and pushed the price upside quite impulsively. However, the bulls failed to sustain the bullish pressure over $74.50 to $75 price area and dropped below again. Oil is currently trading around $71.40 price area and trying to push lower. As per the current price action context, the price may retrace higher towards the dynamic level on the intraday chart in the coming days.
Oil Price Dropped As the Investors Are Worried About the Ongoing Production Dispute
WTI is currently residing near $71.40 price area and trying to decline further. However, the price also broke below the dynamic level of 20 EMA on the daily chart.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil price dropped and currently trading around $71.40 price area. As per the current price action, the price may decline towards $71 to $70.50 price area again in the process. So, if the price declines towards $71 to $70.50 price area and bounced upside with an impulsive bullish candle, the bulls may regain momentum and push the price higher towards $72.50 to $73 price area in the coming days.
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 price may retrace higher towards the dynamic level in the days ahead.
WTI May Continue Lower
According to the daily chart, Oil price dropped and currently trading around $71.40 price area. As per the current price action, if the price can break below $71 to $70.50 support level with an impulsive daily bearish candle, the bears may push the price downside towards $67.50 to $67 price area in the coming days. On the other hand, if the price bounced upside from $70.50 to $71 support level and had a daily bullish candle close above $72.50 to $73 price area, the bulls may regain momentum and push the price higher towards $76 to $76.50 price area in the days ahead.
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 long as the price residing above $70.50 to $71 support level, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.