Oil has become quite impulsive and non-volatile after breaking above $35 area. Oil recovers higher expecting that OPEC+ will extend output cut. Can WTI climb further? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
June 3, 2020, | AtoZ Markets – Oil is currently trading around $37.80 area and trying to push lower. WTI broke above $35 area quite impulsively and maintained the price above it with a weekly close. As per the current scenario, WTI may invite bears for a retracement before sustaining the bullish momentum further in the coming days.
Oil rose today during the Asian session with an expectation that OPEC+ will cut the output as the world retrieving from the COVID-19 pandemic. Moreover, the Organization of the Petroleum Exporting Countries and its allies, including Russia, may enhance the output cut of 9.7 million barrels per day. Besides, Brent crude rose by 0.6% at $39.79, which is the highest since March, with a total gain of 3.3%. The U.S. West Texas Intermediate crude up by 0.9% at $37.14, which is also the highest since March, with a total gain of 3.9%.
Oil Recovers Higher as COVID-19 Lockdowns Easing Slowly
WTI is currently residing near $37.80 area and trying to retrace down. Moreover, the price break above $35 with the support of the dynamic level of 20 EMA on the daily chart, which may carry the price further in the coming days.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil is currently trading around $37.80 area and trying to decline. As per the current price action, WTI may retrace down towards the dynamic levels before bulls continue to recover higher. So, if the price retraces down towards the dynamic level and bounces with a 4-hour candle close, the bulls may push the price higher towards $40 in the coming days.
In addition, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and Tenkan line. The dynamic level of 20 EMA may act as a strong support to push the price higher. The Kijun line and the Tenkan line may work as a confluence of the dynamic level.
WTI Bulls Are Optimistic May Sustain Further
According to the daily chart, Oil is currently residing near $37.80 area and trying to recover higher. As per the current price action, WTI bulls are quite strong may push the price further in the process. So, if the price reaches $40 area and rejects with a daily candle, the bears may regain momentum and push the price down towards $35 again. Alternatively, if the price breaks above $40 area with a daily close, the bulls may recover higher towards $45 in the days ahead.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may pull the price down back to the Mean. Besides, the MACD lines are residing above 0.00 level and may have bearish cross over. The histogram is also sloping down gradually, which indicates that bulls are losing the momentum. Also, the Stochastic Oscillator lines are residing above the overbought level 80 from an extended period. Its also indicating that the upcoming bearish momentum may take place.
To conclude, Oil has gained a good amount of pips amid Coronavirus pandemic. As the lockdowns are easing slowly and the world economy also recovering, there is a high chance that WTI may recover its losses further in the coming days.