Oil remains below $25 area, and the Bulls may push higher. Oil is currently struggling to sustain the Bullish momentum after the price bounced from $20. Let’s check Oil Technical Analysis for more levels and insights.
March 25, 2020 | AtoZ Markets – Oil is currently trading around $24.50 area and trying to recover higher. XTI facing resistance around $24.80 area, while tried two times to break above but failed. Oil Bulls may struggle further to regain Bullish momentum.
Oil price rose today in the Asian session but still remains below $25 area. The ups and downs of Oil spending cuts continues, with the majors now notice significant reductions to spending as Oil stuck near $20 level. We are in the middle of a historical demand and supply crisis. Moreover, Oil consumption could be down by 10 million barrels per day or more. So, if the people are not using cars, flying or consuming anything aside from the essentials, Oil price may remain low.
Oil Remains Below $25 Requires a Breakout
XTI is currently trading around $24.50 area and facing trend line resistance at $24.80. The price is still quite volatile and corrective, but certain Bullish momentum may help further climb.
Image: Oil 4 Hour Chart
According to the 4-hour chart, Oil is currently facing resistance at $24.80 area, while residing at the edge of the descending trend line. The price retested the support level twice around $20 and bounced. Moreover, The Bulls failed to regain the Bullish momentum and Oil remains below $25 area. According to the current price action, the Bulls require to break above the descending trend line to recover higher. So, if the price can break above the descending trend line, Oil may push higher towards $36 area in the coming days.
Furthermore, the dynamic level of 20 EMA is residing below the current price while holding the price as support. It may help the price to break above and continue with the further Bullish momentum. Moreover, the Stochastic Oscillator lines is residing below the overbought level 80 and had a Bullish cross over which is currently rising upward.
XTI Correcting Ahead of an up Move?
According to the Daily chart, XTI is currently residing near $24.50 area and trying to recover higher. The Bulls are successfully holding the price above the daily Bullish pin bar, but it is still quite corrective. As per the current scenario, the Bulls may continue to recover higher with the target of $42 area in the long run, but an impulsive Bullish move above $25 may create the path faster.
Image: Oil Daily Chart
Furthermore, the dynamic level of 20 EMA is residing above the current price. In this case, it may pull the price higher as Mean Reversion but can also act as dynamic resistance along the way. The Stochastic Oscillator lines are above-oversold level 20 and gradually rising upward. On the other hand, the MACD lines are residing below 0.00 level at the verge of having a successful Bullish cross over.
To conclude, Oil still has the potential to recover higher while remaining above $20. So, if Oil can impulsively break above $25 area, the price may recover higher.