Oil started with Gap pushed towards $51.50 again after the market opened today. Oil may push lower after filling the gap and with the rejection from 20 EMA. Let’s check the Oil Technical Analysis for more levels and insights.
February 24, 2020 | AtoZMarkets – Oil is now residing near $51.50 monthly support area after the market opened today. Oil may retrace higher towards $52.50 area before it pushes lower towards $50.50 area. As Coronavirus is affecting the Global market and trades, Oil may struggle further in the upcoming days.
The spread of the Coronavirus in several countries outside China left investors impatient about a hit to Oil demand. The number of Coronavirus infections increasing in South Korea, Italy and Iran. Moreover, Global Shares also extended loss. On the other hand, Michael McCarthy (chief market strategist at CMC Markets) said: “that it would be a temporary economic impact and actions of central banks would at least offset that.”
Moreover, for the global spread of Coronavirus, the European and the U.S. markets react on Friday night. Currently, Investors are questioning the assumption about economic growth and that, of course, is weighing on Oil markets.
Additionally, The Chief market strategist at AxiCorp said, “We should not underestimate the economic disruption as a super spreader could trigger a massive drop in business activity around the globe of proportions the world has never dealt with before”.
Oil Started with Gap may Push Lower Towards $50.50
Oil is currently residing near $51.50 area after the market opened with a gap. After a bounce from $51.50 area, the price may retrace higher towards $51.50 before Bearish bias continues to weigh on the Bulls.
image: Oil 1 Hour Chart
According to the 1-hour chart, price is currently pushing higher after Oil rejected from $51.50 area. Bearish pressure may continue after the retracement. The dynamic level 20 EMA residing near the gap area, which may work as strong resistance to push the price lower. The Kijun line and the Tenkan line also may work as a Bearish confluence with 20 EMA.
On the other hand, the MACD lines are currently indecisive but may have a Bullish Crossover, which may help the price to retrace towards dynamic level 20 EMA. The MACD Bearish histogram volume is gradually decreasing as the price moving higher.
Oil facing Range Between $54.50-$50.50 Area
According to the Daily chart, the price is quite indecisive and volatile after it rejected from the monthly support level. Bulls tried to push the price higher but failed to sustain. If price able to break the range between $54.50 – $50.50 area long term trend may establish.
image: Oil Daily Chart
Additionally, the dynamic level 20 EMA is residing near the current price, whereas the Kijun line and the Tenkan line is holding the price from both sides. Moreover, there is no indication from MACD about any decisive pressure in Oil for the upcoming days.
To conclude, Oil is now quite indecisive and volatile. If the price break above $54.50 resistance, the price may push higher towards $55.00. On the contrary, if the price break below $50.50 then the price may push lower towards $50.