Oil Price Still Indecisive While Bulls Hold Above $20


WTI is at it’s lowest level since 2002, due to reduced demand and price war between Russia and Saudi Arabia. Oil price is still indecisive while Bulls hold above $20. Will WTI recover higher in the process? What are the charts and technical indicators saying? Read more to find further insights into today’s Oil Technical Analysis.

April 1, 2020 | AtoZ Markets – Oil is currently trading at $19.80 area and trying to push lower. Despite the break below $20, the price is still indecisive until a daily close above or below the important psychological level at $20. Though there are certain Bullish Divergence is in the making, Bulls are yet not ready to push the price higher in the process.

Oil Price Still Indecisive – Will It Push Higher?

WTI is currently residing near $19.80 area while Bulls are struggling to gain the momentum. Oil is currently quite volatile and corrective without any definite trend momentum in the process.

Oil Still Indecisive While Bulls Hold Above $20

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil extended its correction after the price broke below $27.50 area. WTI is currently residing inside the intraday range of $27.50 to $20. As per current price action, a 4-hour impulsive Bullish close is required to recover higher. So, if the price can have an impulsive Bullish close above $20, the Bulls may take over the market higher towards $27.50 area in the process.

Furthermore, the dynamic level of 20 EMA is residing above the current price, which is acting as a strong dynamic resistance. In this case, the price needs to break above the dynamic level to move upward. Besides, the MACD lines are residing below 0.00 level and continuously rising upward while the price is in a correction. That is a good indication that the Bullish Divergence is in the making and Bulls are accumulating strength to push higher.

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Will Price Revert Back to the Mean?

According to the Daily chart, the price is currently struggling to regain the Bullish momentum as Oil is under pressure near $20. As per current price action, if the price sustains above $20 area and have a daily close, the Bulls may take over the market and push the price higher towards $27.50 area in the days ahead.

Oil Still Indecisive While Bulls Hold Above $20

Image: Oil Daily Chart

Furthermore, the dynamic level of 20 EMA is residing above the current price, and our expected target level $27.50 area. It may pull the price higher as Mean Reversion. Besides, the MACD lines are residing below the 0.00 level while trying to intersect each other as a Bullish Crossover to add the upcoming Bullish confluence.

To conclude, Oil is currently quite indecisive and volatile. An impulsive daily close above or below $20 will help to find the definite trend. Though the overall momentum is still Bearish, a daily close below $19 may indicate further downward pressure. 

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