Crude Oil is retracing higher right now, having climbed around $2 higher in the last two hours. Although Oil prices remain bearish overall. WTI crude fell more than $1 earlier today to their lowest since before March, so the lows keep getting lower, which is a strong bearish sign.

The global economy has been slowing considerably this year, with the US falling into a recession in the first half of 2022. The COVID-19 restrictions which still continue in China, have curbed imports from the top crude Oil importer, which has been another factor for the decline in demand. Besides that, central banks are still delivering massive rate hikes, after rumours about slowing down last month.

Crude Oil H4 Chart – The Main Trend Remains Bearish

Will the 20 SMA stop the retrace up?

So, expectations of more interest rate hikes and worries of a global economic recession have led to lower fuel demand and the main trend remains bearish. We have been seeing a retrace higher in the last 2 hours but the 20 SMA (gray) has been acting as resistance and we are thinking about opening a sell signal in US TI Oil.

Natural Gas Daily Chart – The 20 SMA Is Under Attack

Will the 50 SMA hold for natural gas?

Natural Gas is also turning bearish after the failure to push above the major level at $10. The 20 SMA (gray) was providing support for some time but eventually, it gave way as the pressure remains to the downside, while yesterday we saw another strong bearish move, which took the price below $8. So, there’s a bearish bias for energy products right now, which means that we should probably sell Oil soon.

US WTI Crude Oil