Oil price rose today during the Asian session by holding the previous session's gains. Oil surged above $16 area as the U.S. found several hundred million barrels capacity space to store WTI. What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.
April 30, 2020 | AtoZ Markets - Oil is currently trading around $17.30 area and trying to climb further. After bouncing from $10 support area on Tuesday, WTI pushed the price higher quite impulsively. As per the current scenario, Oil may recover further but may face resistance at $20 area in the process.
Oil Surged Above as the U.S. WTI Crude Capacity Increased
Oil sustains its significant gains in the previous session on signs the U.S. crude gobble is not increasing as fast as hoped, and that Gasoline demand beaten by Coronavirus lockdown is starting to recover. Besides, West Texas Intermediate crude rose by 7.2% or $1.8, at $16.14, and Brent crude up by 3.9% or 88 cents, at $23.65 in the earlier session.
Furthermore, Nine companies in the United States including - Chevron Corp, Exxon Mobil Corp and Alon USA Inc have agreed to rent space to store 23 million barrels of crude in the U.S. emergency Oil reserve, as President Trump administration tries to help the energy companies deal with the crash in Oil value.
On the other hand, Treasury Secretary Steven Mnuchin said, "We're also exploring potentially having the ability to store another several hundred million barrels. So we're looking at lots of different options." Besides, President Donald Trump said, "It's unbelievable. It's prices that are so low, and in some cases, we're storing oil and getting paid for storage because we have a tremendous capacity for it. So what's happened with these strategic reserves is incredible."
Can Oil Reach to $27.50 Event Level?
According to the 4-hour chart, Oil is currently trading around $17.30 area after WTI surged above $16. As per the current price action, Oil may climb further higher, if it takes out $20 barrier in the days ahead. So, if Oil surges above $20 area, the bulls may push the price higher towards $27.50. Alternatively, if the price rejects $20 area, the bears may push the price down towards $10 again.
Image: Oil 4 Hour Chart
Furthermore, the dynamic level of 20 EMA is currently residing below the price. It may act as a support to push the price higher. In contrast, if the price breaks below the dynamic level, bears may regain momentum in the process. Besides, the MACD lines are residing near 0.00 level, and gradually rising upwards. It indicates that current bullish pressure is quite strong to sustain further.
To conclude, Oil surged above and recovering the previous losses slowly. Current bullish pressure in quite impulsive and non-volatile may sustain further in the coming days.