Oil has become volatile and corrective but still remaining above $40 area. Oil price dropped today as investors are hoping OPEC will extend supply cut further. What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
July 13, 2020, | AtoZ Markets – WTI is currently trading around $40.20 area and trying to decline. The price broke below the uptrend line last week, but failed to sustain further and climb above $40 area again. As per the current scenario, Oil may consolidate further in the coming days.
Oil price dropped nearly 1% today as investors are looking towards OPEC technical meeting held this week. It is required to suggest a facilitating in supply cuts that have been supporting up WTI crude prices. Moreover, Oil was minimal changed a week ago as a resurrection of Coronavirus cases incited a few U.S. states to tight travel limitations. It could dampen WTI demand recuperation at the world’s biggest purchaser.
Oil Price Dropped as the Supply Decline Again Because of Coronavirus Pandemic
WTI is currently residing near $40.20 area and trying to push downward. Furthermore, the price has bounced from the dynamic level of 20 EMA last week, which indicates that bulls are still on the market.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil price dropped and currently residing near $40.20 area. As per the current price action, if the price can have a bullish candle close above $40 area, the bulls may recover higher towards $41 area again. Apart from this, if the price breaks above $41 area, the bulls may sustain the bullish bias towards $42 area in the coming days. Alternatively, if the price breaks below $40 area and the uptrend line, the bears may regain momentum and decline towards $37 area in the process.
In addition, the dynamic level of 20 EMA is currently residing near the price. So, if the price found support on the dynamic level, the bulls may recover further. In contrary, if the price breaks below the dynamic level, the bears may decline further in the days ahead. Besides, the Stochastic Oscillator lines are currently residing below the overbought level 80 and had a bearish cross over. It indicates bears are gaining momentum.
Will Dynamic Level Carry the Bullish Trend?
According to the daily chart, Oil price dropped but still remaining above the dynamic level of 20 EMA. As per the current price action, if the price can have a bullish impulsive daily close above $41 area, the bulls may sustain the bullish trend towards $45 area in the coming days. In contrast, if the price breaks below $40 area with an impulsive bearish close, the bears may regain momentum and push the price downside towards $35 area in the process.
Image: Oil Daily Chart
Furthermore, the dynamic level 0f 20 EMA is currently residing below the price, which may carry the price as a support in the days ahead. Alternatively, if the price breaks below the dynamic level, the bears may regain momentum. Besides, the RSI line is currently residing below level 60 and gradually sloping down. It indicates that bulls are losing momentum slowly.
To conclude, after gaining a massive amount of pips, the Oil price has become volatile because of COVID-19 second wave. A daily impulsive close is required to identify the definite momentum in the coming days.