Oil Struggling below $30 and Bears may continue to push lower. XTI has become very corrective and volatile while residing below $30.20 area. Let’s check Oil Technical Analysis for more levels and insights.
March 17, 2020 | AtoZ Markets – Oil collapse below $30 a barrel after the market opened today. Oil is now the most volatile market on record after Saudi Arabia and Russia price war started. As the Airlines cutting the number of flights daily and a growing number of countries are locked-down, the Oil demand is declining gradually.
Moreover, West Texas Intermediate (WTI) 95% added delivery on April or 3.3% to $29.65 a barrel on the New York Mercantile Exchanges. Brent crude rose 52 cents to $30.57 for May settlement on ICE Futures Europe exchange but the contract dropped below 11.2% on Last Monday. As per current price action, Oil may recover higher in the coming days but needs to break above its corrective phase before any strong move.
Oil Struggling below $30 may Bounce higher?
The price is currently trading near $29.80 area and facing resistance at $30.20. XTI struggling above $27.50 area and may recover as it sustains the Bullish momentum above.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price of Oil is currently residing above $27.50 and trying to climb higher. After XTI broke below $30, the Bearish pressure is turning weaker as Bulls strikes back. If the price reaches at $27.50 area again and bounce higher, the Bulls may take over the market to recover higher above $30 in the process.
Moreover, the dynamic level of 20 EMA is residing near the current price as Resistance, along with the Kijun line and the Tenkan line. If Oil can break above the dynamic levels, the Bulls may push the price higher above $30 area. Besides, the MACD lines are rising upward gradually indicating certain Bullish Divergence in the making.
Oil Bears Strengthening or Weakening?
According to the Daily chart, the price of Oil is currently trading near $29.80 area after a Bearish daily engulfing bar close. The Bears are losing momentum while Oil struggling above $27.50 area. If Bulls remain above $27.50 with a daily close, Oil may recover higher above $30 and head towards $42 resistance area in the coming days.
Image: Oil Daily Chart
Moreover, the MACD lines are currently residing below 0.00 level, and the Bullish cross over is in the making. The dynamic level of 20 EMA is residing above the current price, along with the Kijun line and the Tenkan line. As a result, the dynamic levels may pull the price higher towards Mean, which resides near the $42 price area.
To conclude, Oil is currently struggling above $27.50 area and may sustain Bullish pressure further. As price manages to remain above $27.50 area, further up move may occur which may take out $30 and push higher.