Oil price bounced higher from $23.30 area but remains below $25 event level. Oil struggling below $25 – can Bulls Strike Back? What are the charts and technical indicators are saying? Read more to find further insights into today’s Oil Technical Analysis.
April 8, 2020 | AtoZ Markets – Oil is currently trading around $24.70 area and trying to break above $25 area. After fill-up the bullish opening gap of Monday, WTI push the price lower towards $23.30 area. As per the current scenario, bulls are trying to push the price higher may face resistance at the dynamic level in the process.
Oil Struggling Below $25 but Bulls Still Have Hopes
Oil price claimed higher on the hope that OPEC and its allied members will proceed to the Oil supply cut in the Coronavirus pandemic. The Organization of Petroleum Exporting Countries (OPEC) and its allies (OPEC +), including Russia is going to have a videoconference meeting this Thursday, which expected to be more successful than March gathering. Moreover, this meeting may end the Oil price war between Russia and Saudi Arabia and may ease the supply-demand.
On the other hand, the U.S. Energy Information Administration (EIA) said yesterday, “U.S. crude production, meanwhile, is expected to slump by 470,000 BPD, and demand set to drop by about 1.3 million BPD in 2020.” Besides, according to the data from the American Petroleum Institute (API), the U.S. crude inventories jumped by 11.9 million barrels to 473.8 million barrels in the week to April 3.
WTI Struggle May Continue Further
WTI is currently trading around $24.70 area but still Oil price residing below $25. The price has been quite volatile and indecisive, and rejected the dynamic resistance on the daily chart yesterday.
Image: Oil 4 Hour Chart
According to the 4-hour chart, WTI price is currently residing near $24.70 area while facing resistance at $25. As per the current price action context, if the price breaks above $25 area with an impulsive 4-hour close, the bulls may take the price higher towards $29 in the days ahead. Alternatively, a break below $23.30 area may lead the price further down towards $20.
Furthermore, the dynamic level of 20 EMA is residing above the current price, which may act as a strong resistance. In contrast, if the price breaks above the dynamic level and have an impulsive close, the bulls may sustain further towards our expected target area $29. Besides, the MACD lines are rising upward gradually by following the uptrend line and may have a bullish intersection in the days ahead above 0.00 level.
To conclude, Oil is still struggling to gain sustainable bullish momentum because of ongoing negotiations to end the price war and Coronavirus issue. As a result, the bulls may recover higher but need a strong break out above $25 in the coming days. It should be noted, as long as Oil price residing below $25, the long-term bias will remain bearish.