Oil price has been residing between the ranges of $27.50 – $20 since March 17. Oil price is still indecisive below $27.50 – can break higher? What are the charts and technical indicators are saying? Read more to find further insights into today’s Oil Technical Analysis.
April 13, 2020 | AtoZ Markets – Oil is currently trading around $23.75 area after breaking above $23.50 resistance level. The price has been struggling for an extended period, but OPEC+ output cut may going to ease the Oil price a little bit amid this Coronavirus pandemic. As per the current price action context, as long as the price residing below $75.50 area, the overall bias will remain bearish.
OPEC succeeded on last Thursday as OPEC+ agreed to cut 10 million BPD in Oil production. Moreover, Oil inventories warp the layer and threaten Oil stabilization over the world. It let the Oil price spike by the Organization of Petroleum Exporting Countries (OPEC) actions as it relates to potential production cut. On the other hand, many analysts doubted that the group, and other various states who agree to sit down with OPEC to cut out a new market stabilization plan, which may not help the entire Oil industry.
Oil Still Indecisive as OPEC+ Output Cut Has No Impact on the Market
Oil is currently residing near $23.75 area and trying to retest $23.50 support area. WTI price has been quite volatile and corrective as the COVID -19 has stopped the travel and tourism industry, which is the largest Oil consumption sector.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price is currently residing near $23.75 area and declining. After bouncing from $22 area, the bulls impulsively pushed the price higher and had a bullish 4-hour pin bar. As per the current scenario, if the price bounce from the $23.50 area, the bulls may continue the bullish pressure towards $27.50 in the days ahead.
Furthermore, the dynamic level of 20 EMA is residing above the current price, which may pull the price as Mean Reversion. Besides, the MACD lines are residing near the 0.00 level, which may have a bullish intersection in the process.
Can WTI Break the Dynamic Level’s Resistance?
According to the Daily chart, WTI is currently residing near $23.75 area after the price rejected from the dynamic level last week. So, if the price can have a daily close above$23.50 area, the bulls may regain momentum, and push the price higher towards $36 in the coming days. Alternatively, if the price closes below $22 area, the bears may push the price towards $20 again.
Image: Oil Daily Chart
Moreover, the dynamic level is currently residing above the price, which may act as strong resistance again. In contrast, if the price can break above the dynamic level, the bulls take over the market in the coming days. Besides, the MACD lines are rising upward gradually after having a bullish cross over. Furthermore, the RSI line is also rising upside may sustain further in the process.
To conclude, the Oil price is still indecisive as the output cut did not have any significant impact on the market yet. As long as the price remains below $27.50 area, the bias will be bearish. An impulsive dynamic level break upwards with a daily close is required to strike higher.