Oil Sustains Above $62 Support Level – Bulls to Regain Momentum?


After rejecting $67 to $66.50 key area, Oil bears have regained momentum and hit April 2021’s low. Oil sustains above $62 psychological support level. Bulls to regain momentum in the coming days. What are the charts and technical indicators are saying? Read more to find further insights into today’s WTI Technical Analysis.

May 20, 2021, | AtoZ Markets – Oil price declined today morning during the Asian session. Oil was trading inside the ranges of $63.50 to $67 price area for an extended period. However, the bears have successfully regained momentum and broke below $64 to $63.50 support area with a daily bearish candle. Oil is currently trading around $62.50 area and trying to push higher. As per the current price action, the price may face strong support around $61.50 to $62 area in the coming days.

Oil Sustains Above as the Bulls Are Still Optimistic

WTI is currently residing near $62.50 area and trying to recover higher. However, the price is still residing over the Kumo Cloud on the daily chart.

Oil Sustains Above

Image: Oil 4 Hour Chart

According to the 4-hour chart, Oil sustains above and currently trading around $62.50 area. As per the current scenario, if the price can have an impulsive 4-hour bullish candle close above $61.50 to $62 support area, the bulls may regain momentum and recover higher towards $63.50 to $64 area again in the coming days. Alternatively, if the price pushes lower and breaks below $62 to $61.50 support level, the bears may sustain the bearish pressure towards $60.50 to $60 area in the process.

In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price downside. Along with this, the Stochastic Oscillator lines are currently residing near the oversold level 20 after having a bullish crossover. It indicates that the bulls may regain momentum in the coming days.

WTI May Strike Higher

According to the daily chart, Oil sustains above and currently residing near $62.50 area. As per the current price action context, if the price can have an impulsive daily bullish candle close above $61.50 to $62 support level, the bulls may regain momentum and push the price higher towards $63.50 to $64 area as a first target. The second target will be $66.50 to $67 key area if the price can break above $63.50 to $64 area in the process.

Oil Sustains Above

Image: Oil Daily Chart 

Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may work as strong resistance to push the price downward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead. However, the Bulls may regain momentum if the price can break over the dynamic level in the process.

To conclude, as long as the price residing over the Kumo Cloud, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days. 

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