Oil Strikes Above $40 Area – Bulls to Recover Further?


Oil has become quite impulsive and non-volatile and broke above January’s high. Oil strikes above $40 area with a sign that demands are rising after Coronavirus lockdowns are easing in many countries. Oil Bulls to recover further? What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.

June 23, 2020, | AtoZ Markets Oil price rose today during the Asian session as White House Trade Adviser Peter Navarro told in a press conference last night that the U.S. trade deal with China is “over”. WTI is currently trading around $41.40 area and trying to climb higher. The price found support on the dynamic level of 20 EMA on the daily chart and bounced higher. As per the current scenario, WTI bulls are quite strong may sustain the bullish bias further in the coming days.

Oil Strikes Higher as COVID-19 Lockdowns Are Easings Slowly

WTI is currently residing near $41.40 area and trying to recover further. Moreover, the price of Oil strikes above $40 psychological area quite aggressively and had a daily impulsive bullish close.

Oil Strike Above

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil strikes above $40 area on the New York session and currently residing near $41.40 area and trying to push higher. The price also found support on the Tenkan line and the dynamic level of 20 EMA on the 4-hour chart. As per the current price action, if the price can have a bullish impulsive 4-hour candle close, the bulls may push the price further towards $45 area in the coming days.

Furthermore, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line and the Tenkan line. The dynamic level 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. Besides, the MACD lines are currently residing above the 0.00 level and gradually rising upward. It indicates bulls may hold the bullish momentum further in the coming days.

WTI Bulls Are Optimistic

According to the daily chart, Oil is currently residing near $41.40 area and quite impulsively pushing upside. According to the V wave calculation, the price broke above the B point, which indicates that bulls may continue the bullish trend further in the coming days.

Oil Strikes Above - AtoZ Markets

Image: Oil Daily Chart

So, if the price can have a daily close above the last bullish candle high, the bulls may recover higher towards $45 area in the process, as per the V wave take profit level calculation.

In addition, the dynamic level of 20 EMA is currently residing below the price, which may act as a strong support to push the price further. Besides, the MACD lines are currently residing above 0.00 level and may have a bullish cross over. It indicates that bulls may sustain the bullish trend further in the days ahead.

To conclude, Oil has recovered more than fifty per cent of its recent massive drawdown and strikes above $40 area. A daily close is required to identify the definite momentum in the coming days. 

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