Oil price pushed lower and may sustain further. After an extended period of correction phase, Oil rejected $48 area and pushed down quite impulsively. Let’s check the Oil Technical Analysis for more levels and insights.
March 6, 2020, | AtoZ Markets – The price of Oil rejected $48 area and pushed lower. Oil Bullish pressure failed to sustain against the U.S. Dollar. After retracing lower to the next support area, Bulls may gain momentum in the coming days.
Oil price slips today on the fears over OPEC+ deal for further output cuts on the concern of Coronavirus crisis. The Organization of the Petroleum Exporting Countries (OPEC) and its allies group known as OPEC+ agree to cut by an extra 1.5 million barrels per day (BPD) until the end of this year. OPEC+ meeting call scheduled today in Vienna. Russia and Kazakhstan, both members of OPEC+, said, “They has not yet agreed to the deeper cut, raising the risk of a collapse in cooperation that has propped up crude Price since 2016.”
On the other hand, RBC Capital Markets said in their note, “If it says no, the entire union could fall and with it, any new two-sided trade and investment deals in the pipeline as well as the strategic influence Moscow has secured by participating in the production agreement.” Moscow, Riyadh and Abu Dhabi is currently in a high-level call to get the deal done.
Oil Pushed Lower but may Continue Higher after Bounce
The price of Oil pushed lower after rejecting $48 area. Bullish pressure failed to continue higher and faced strong resistance. Oil pushed lower after it broke its corrective phase and may sustain further lower towards the next support area in the coming events.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price of Oil is currently residing near $45.30 area and tying to continue to push lower. Oil failed to hold the Bullish momentum and rejected $48 area. After rejecting $48 area, Oil continued lower impulsively. Bulls may continue Bullish pressure after retesting lower towards $45 area. If Bulls able to hold the price above $45 area, Bullish pressure may sustain further with the target of $50.50 area again.
Moreover, the dynamic level of 20 EMA is residing above the current price, along with the Kijun line and the Tenkan line. If the price can break this dynamic levels upward after retesting $45 area, the Bullish pressure may continue higher. On the other hand, the MACD lines area residing below 0.00 level but moving upward gradually. If the MACD lines can break above 0.00 level, it may give some boost for the Bulls.
To conclude, Oil Bearish pressure may sustain further lower towards $45 area and find support. If Bulls can have a strong close above $45 area, the Bullish pressure may continue with the target of $50.50 in the coming days.