Oil price maintains above the key support area $20 and Bulls may gain some momentum. XTI started trading today with a Bearish gap and filled up successfully. Let’s check Oil Technical Analysis for more levels and insights.
March 23, 2020 | AtoZ Markets – Oil is currently trading near $22.30 area after fill up the weekly open Bearish gap. The price of Oil pushed lower as Asian session opened today but failed to break below $20.50 area. According to the current price action, Oil Bullish momentum is quite strong and may recover higher in the coming days.
Oil price dropped to their lowest levels since 2003 as a related deal between the U.S. and OPEC failed to incarnate. As the ongoing price war between Russia and Saudi Arabia is still in progress, U.S. President Donald Trump is facing an increasing call from the U.S. senators and congress members to conclude the war as soon as possible.
On the other hand, International Brent Oil Futures fell 4.09% to $26.06 in the Asian session today, while the U.S. Crude Oil WTI Futures rose 0.75% to $22.83 and may recover further.
Oil Price Maintain Above $20 Area May Push Higher Again
XTI is currently residing near $22.30 area and trying to push higher. The price is quite volatile and corrective, but Oil managed to remain above $20 area successfully, which is a good indication for further upward pressure.
Image: Oil 1 Hour Chart
According to the 1-hour chart, the price of Oil is residing near $22.30 area after filling up the Bearish gap. Oil is still corrective and indecisive but trying to climb further higher. To sustain the Bullish pressure further, XTI needs to break above the dynamic level 20 EMA as well as the $23 resistance level. In this case, if Oil price maintains the momentum above $20 area and breaks above the $23 level in the coming days, then Oil may recover higher towards $27.50 area.
Furthermore, the MACD indicator lines are residing below the 0.00 level and may have a Bullish cross over in the process. The MACD histograms are squeezing upward, and upcoming Bullish histogram may add some hope to the Bulls.
XTI Turned Volatile and May Reverse Soon
According to the Daily chart, XTI is currently trading at $22.30 area, while Oil price maintains above $20 with a weekly close. The price has been quite corrective and volatile from the last two weeks but managed to sustain above $20 area. So, if Oil can break above $25 with a daily close, the Bulls may push the price higher towards $36 in the coming days.
Image: Oil Daily Chart
Besides, the dynamic level of 20 EMA is residing above the current price and also our expected target level of $36 area. The dynamic level may pull the price higher as the price revert back to the Mean, 20 EMA. Moreover, the MACD lines are residing below 0.00 level, and Bullish cross over can occur in the process. Additionally, the Stochastic Oscillator lines are residing above the oversold level 20 and gradually pushing upwards.
To conclude, Oil price maintained the Bullish momentum above $20 area quite well. In this case, if the price can have a Daily close above $25 area, Oil Bulls may recover higher before continuing the Bearish trend.