Oil price rose higher after bouncing from $23.50 area during the New York session yesterday. Oil price strike higher as Russia is willing to cut WTI output. What are the charts and technical indicators are saying? Read more to find further insights into today’s Oil Technical Analysis.
April 9, 2020 | AtoZ Markets – Oil is currently trading around $25.50 area and trying to push lower. After bouncing from $23.50 area, WTI price reaches at $26.20 on last trading day. As per the current scenario, bears are trying to push the price lower may retrace 50 per cent of the last daily candle.
Oil price climbed as the price war between Russia, and Saudi Arabia seems to be end. OPEC and its ally Russia is going to meet on Thursday to try to agree on record Oil output cuts amid this Coronavirus pandemic. Moreover, global Oil demand fell as much as 30% as the lockdown grounded aircraft, and reduced vehicle usage inhibit economic activity. On the other hand, U.S. President Donald Trump said last week; He had brokered with OPEC leaders Saudi Arabia and Russia could agree on cuts of as much as 10 – 15 million barrels per day or 10 – 15% of global supplies.
Oil Price Strike Higher but Still Remains Below $27.50
Oil is currently residing near $25.50 area and trying to decline. The current price action is quite non-volatile may bounce higher from $25 area in the coming days.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price is currently trading around $25.50 area after breaking $25 with an engulfing candle. As per the current price action, WTI may retrace down 50% of the engulfing candle before recover further. So, if the price pushes down towards $25 and bounce, the bulls may push the price higher towards $28 area in the process.
Furthermore, the dynamic level of 20 EMA is currently residing below the price, along with the Tenkan line. The dynamic levels may work as a strong support to push the price higher. Moreover, the dynamic levels broke above the Kumo cloud, which indicates bulls may hold the bullish momentum and recover higher. Besides, the Stochastic Oscillator lines are rising upward gradually may sustain further in the days ahead.
Read More – Bitcoin Mining Difficulty Increased by Almost 6%
WTI Bears Active Below $28
According to the daily chart, Oil has been quite volatile and indecisive from the past two weeks. Besides, the dynamic level of 20 EMA rejected the price several times and pushed lower. As per the current price action context, the price bounced from $23.50 area and had a daily bullish close. So, if the price can break above $28 with a daily impulsive candle, the bulls may continue the bullish momentum and recover higher towards $36 area in the days ahead. Alternatively, if the price breaks below $23.50 area and have a daily close, the bears may take over the market and push the price lower towards $20.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing above the price, which has acted as a strong resistance before. The bulls need to break above the dynamic level to recover higher. Besides, the MACD lines are residing below 0.00 level after having a bullish cross over, which indicates further bullish momentum may take place. Moreover, the RSI line is also rising upward while residing above 30 level.
To conclude, Oil has been quite volatile and corrective because of the ongoing price war between Russia and Saudi Arabia. Oil price may strike higher if price breaks above $28 as Russia and Saudi Arabia agree on Oil output cut to ease the global supply-demand in the COVID-19 pandemic.