Oil Sustained Consistent Bullish Pressure Above $23 Price Area. XTI may continue its Bullish momentum further in the coming days. Let’s check Oil Technical Analysis for more levels and insights.
March 24, 2020 | AtoZ Markets – Oil is currently trading at $24 area after the price bounced from $20 with consistent Bullish pressure. The price of Oil pushed lower yesterday but bounced from $20 key support area again with a daily bar. According to the current price action, Oil Bullish momentum is quite consistent and may recover higher in the coming days.
Oil price climbed higher today in Asian Trading Session as the U.S. indicates the chance of an alliance with Saudi Arabia to settle Oil price and end the price war. The U.S. Energy Secretary Dan Brouillette indicate that a U.S. – Saudi Oil alliance may stabilize the price as Coronavirus pandemic continues to harm the demand. Moreover, the war between Russia and Saudi Arabia shows no sign of diminishing.
Oil Bounced Higher but Facing Dynamic Resistance
XTI is currently residing near $24 area and facing resistance at the dynamic level of 20 EMA. The price is quite volatile and indecisive but have the potential to recover higher in the coming days.
Image: Oil 4 Hour Chart
According to the 4-hour chart, the price of Oil is currently struggling to maintain the Bullish momentum as the dynamic level of 20 EMA is holding the price as resistance. Oil tested $20 area two times and bounced back. As per the current scenario, Oil needs to break above the dynamic level to sustain Bullish pressure. Therefore, if the price can break above the dynamic level of 20 EMA, the Bullish momentum may continue further upward with the target of $36 in the process.
Furthermore, the MACD indicator’s lines rising upward gradually while residing below the 0.00 level. So, if the MACD lines continue to rising upward and the histogram maintains its Bullish structure, the price will have more significant confluence to continue higher.
Oil Bearish Gap Yet to Fill Up
According to the Daily chart, XTI is currently residing near $24 area after a daily Bullish pin close. The Bulls has already taken over the pin bar’s high and may sustain further upward. As per the current scenario, the Bulls may continue to recover higher with the target of $42 area to fill up the Bearish gap.
Image: Oil Daily Chart
Apart from this, the dynamic level of 20 EMA is residing above the current price. As a result, it may pull the price higher as Mean Reversion. The MACD lines residing far below from 0.00 level and may have Bullish cross over soon. Moreover, the Stochastic Oscillator indicator’s lines above the oversold 20 level after having a Bullish cross and rising upward gradually.
To conclude, Oil Bulls are quite strong with the current momentum. Despite the recent Bearish trend, Oil may continue to recover higher to fill up the Bearish gap towards $36 or higher.