Selling the Retrace Higher in Crude Oil, As US Govt Plans More Releases from Its Reserves

Crude Oil has moved higher on softer USD, but we decided to open a sell Oil signal as the overall picture remains bearish

Written by: Skerdian Meta • Friday, September 9, 2022 • 1 min read

• Last updated: Friday, September 9, 2022

Crude Oil has been quite bearish since the middle of June, as it became clear that the global economy was having difficulties, with the prices surging higher and central banks raising interest rates pretty fast. The price had formed a bottom below $86 though, but the decline resumed again earlier this week and the support zone was broken.

Crude Oil H1 Chart – Buyers Facing the 100 SMA

Can the previous support turn into resistance for the US WTI Oil?

Today we are seeing a recovery in crude Oil prices after opening in negative territory amid volatile trade. Buyers managed to push the price above the 50 SMA (yellow) on the H1 chart which immediately turned into support and now they are testing the 100 SMA (green), which has acted as support and resistance before.

Analysts have said that Russia’s threat to halt Oil and gas exports to Europe in case a price cap is imposed on energy exports from the country, helped push the prices higher. However, demand concerns amid renewed lockdowns in China which is one of the world’s largest importers of crude Oil is limiting the gains.

Besides that, U.S. President Joe Biden’s administration is weighing the need for further releases of crude Oil reserves from the nation’s emergency stockpiles after the current program ends in October. This is keeping crude Oil in check, so we decided to open a sell forex signal below the 100 SMA, hoping for a reversal lower soon.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.